Is copper poised to take gold’s throne? As economic malaise spread around the globe; silver and gold stocks became top performers. Worried investors flocked to both metals as a means to safe guard their investments as stocks, bonds and currencies became increasingly volatile. Copper investments were not appealing. Copper, fundamental to the transfer of electricity for buildings, machinery, transportation and construction is often used to signal changes in economic activity; copper is a mirror of economic growth. With the global economy in shambles, copper shed its value to investors.
Now, the tide may be changing. Trends over the past few days show that investors have made heavy switches out of gold and silver names, and into copper names. Last week I reported on how China’s stimulus purchases were stripping inventories and causing the metal to reach a fourth month high. Stronger Chinese copper interest since the start of the year helped boost the premium against the LME cash contracts. London Metal Exchange warehouse stock levels have declined by 36,000 tonnes since the end of February.
ABY Price at posting:
11.5¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)