Illustrates previous comments --- That large financiers will be using leverage to capitalise on an eventual copper bubble. That one must take care with long term projections based on present price of copper.
However production of copper can't be ramped up in a hurry. Demand will not dry up overnight. Meaning expect copper price to stay high in the months ahead.
The effect of oil price is starting to install fear on future growth. Perhaps the "smarties" are starting to move out before the aftermath of the American election. Bush's financial managers have no doubt kept the economy boyant at any cosy. Any future cost that is.
While medium term it appears to me - not having followed matters really - that price of oil is high due to a series of unexpected interuptions in supply from various areas. If so expect a return to more stable and lower prices medium term. Perhaps after American election too?
The sudden drop in copper price and fears of impacting high oil price is obviously the reason for a slight buying fatigue leading to slight price fall back with Anvil. Miningnut anticipated this with his indication that a fall back to 55 cents would be an excellent buying opportunity.
Anvil being one low low cost producer is viable and will stay viable with copper at any low price.
Do not expect that will be a concern for most of this decade anyhow.
Cheers,
NT
AVM Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
