Copper price - Awoonga's Perspective
Going back over the copper price for the last 50 years we see that the copper price rose steadily from 40c in 1960 to $1.60 in 2000. This is a rate at a little better than 3% per year or in line with average economic growth.
From 2000 to 2008 the copper price rose dramatically to $4.00 then the GFC took the price back to $1.50.
The question is what would be a fair price for copper today?
Average case scenario would be a 3% yearly increase from 2000 making today's price $2.40.
Due to the ever increasing demand for copper we have seen recent prices a lot higher than this but lately we have seen $3.00 being tested.
Perhaps $3.00+ would be a fair price for copper today but copper investors will have that $2.40 price in their considerations.
How does the above affect AVB?
Generally, with a high copper price all miners can make money. If the price were to go back to $2.40, only a few copper miners including AVB can make money.
Perhaps the recent interest in AVB besides potentially becoming a miner, has more to with the copper price possibly going down and not up in the next 12 months.
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