Copper new uptrend?
The price of copper has been on a tear over the past few weeks as inventory levels worldwide fall. China which consumes about 20% of global production remains on a very robust growth trend and continues to be the main force in the copper market. The global inventory levels have fallen for eight weeks in a row and there appears to be the potential for further declines as the building season in many parts of the world is just starting to pick up momentum.
Over the past few years there has not been a dramatic increase in copper production and the opening of new mines has been a slow process. The current producers have been unable to expand production sufficiently to meet the increase in demand. New mines are going to come on stream but the time frame to get approvals and complete the permitting process can extend out to ten years in some regions. Do not be surprised when the price of copper rallies back to last years high of just over $4.00 a pound from the current level of $3.32 per pound.
I continue to be bullish on copper and would continue to hold Northern Orion Resources (NNO-T, $4.85) which is held in the Aggressive Model Portfolio originally purchased in January 2007 @ $4.33 (12% return to date or 56% annualized) initial 18 month target $8.00 and Aur Resources (AUR-T, $25.00) which has been held in the Growth Model Portfolio since March 15 2005, original cost was $8.45. (total return to date 195% or 135% annualized) 18 month target price increased to $32.00.
For more information go to www.campbellreport.com
Over the past few years there has not been a dramatic increase in copper production and the opening of new mines has been a slow process. The current producers have been unable to expand production sufficiently to meet the increase in demand. New mines are going to come on stream but the time frame to get approvals and complete the permitting process can extend out to ten years in some regions. Do not be surprised when the price of copper rallies back to last years high of just over $4.00 a pound from the current level of $3.32 per pound.
I continue to be bullish on copper and would continue to hold Northern Orion Resources (NNO-T, $4.85) which is held in the Aggressive Model Portfolio originally purchased in January 2007 @ $4.33 (12% return to date or 56% annualized) initial 18 month target $8.00 and Aur Resources (AUR-T, $25.00) which has been held in the Growth Model Portfolio since March 15 2005, original cost was $8.45. (total return to date 195% or 135% annualized) 18 month target price increased to $32.00.
For more information go to www.campbellreport.com
posted by Grant | 1:21 PM
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