New Article Reveals Copper Making a Comeback in 2008
Larry Edelson takes a closer look at soaring prices for natural resources and how they are now entering their next phase of rapid acceleration. In this issue of Money and Markets, Mr. Edelson reports on how he believes 2009 could be a very profitable year.
Jupiter, Fla. (PRWEB) January 19, 2008 -- Larry Edelson takes a closer look at soaring prices for natural resources and how they are now entering their next phase of rapid acceleration. Mr. Edelson reports on how he believes 2009 could be a very profitable year.
Soaring prices for natural resources are now entering their next phase, a rapid acceleration that could take investors by surprise, and could turn out to be the most profitable up move ever.
Consider these forces that are gathering steam:
| | - The sinking dollar, which could fall much further.
- A crumbling empire of debt in the U.S. of which the subprime crisis is just the opening act.
- Inflation that is about to explode during an election year, shocking almost everyone.
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Two more important points:
1. The U.S. is already in a recession. Housing and real estate is a mess. The financial sector has imploded. The auto manufacturers are still wallowing in a depression in their sector. And manufacturing in general is gone.
2. In contrast to the U.S., Asian and emerging economies continue to surge. This is true for China and India, as well as the rest of Southeast Asia and Latin America.
And short term and long term for gold's bull market is very strong. But it's expected to experience some wild swings in 2008. Major support is way down at the $854 level. If that level is broken on a closing basis at any time, gold could fall as low as $780.
On the upside, gold is in record highs. The key points to watch are the $1,000 level, which could pose some psychological resistance, followed by $1,250.
As far as oil goes, it is still in a very strong long-term uptrend with higher prices yet to come. But short-term, it's in a very wide trading range defined by $88 on the lower end and $100 per barrel on the upper end. A close above $100 a barrel and there's a good chance it will reach $120. On the other hand, a close below $88 would indicate that oil could fall further, to as low as $72 before the next explosive move up. Because oil has a $14-a-barrel short-term trading range, it can be very volatile, swinging back and forth yet still be capable of blasting off to the upside.
Copper, however, is the key metal to watch because it's very sensitive to global economic conditions. Copper is often a leading indicator for the economy, anticipating a recession when it falls or pointing to a resumption of growth when it breaks out to the upside.
And interestingly, copper has recently been strengthening even in the face of the U.S. slowdown. That could be signaling Asian economies, where much of the demand for copper is coming from, remain buoyant, steaming ahead.
Also, foods are now in a major bull market. Corn, wheat, soybeans, sugar, and coffee are all taking off to the upside. This sector will be one of the stars in 2008 with much higher prices to come. Corn, already at $5 a bushel, could easily double this year. Wheat, at nearly $10 a bushel, could jump another 50% if not more. The same holds true for soybeans, sugar and coffee. They all have tremendous upside potential.
"But here's the real action to watch for in 2008. Once the Dow falls to the 11,000 area and holds up successfully, there is a very high chance that it will be creating a base for a new bull market to emerge. One that could see the Dow move all the way up to 20,000," Mr. Edelson states.
To read this issue online, please visit:
http://www.moneyandmarkets.com/Issues.aspx?Larry-Edelson-on-Gold-Oil-Copper-and-Stocks-3
About Larry Edelson and Money and Markets
With nearly three decades of experience in precious metals and natural resources markets, Larry Edelson has played a pivotal role in training Weiss Research staff and in guiding Weiss Research's customers to prudent investments in the sector. His Real Wealth Report, Gold Trader Hotline and Energy Options Alert provide a continuing education on natural resource investments, with recommendations aiming for both profit and risk management. His team of technical analysts helps enhance the timing of investment recommendations with the aim of continually improving the performance results for investors.
Mr. Edelson is also a regular contributor to the daily e-letter, Money and Markets. Recognized as an expert in precious metals and natural resources, he is often called upon by the media for his investing views. Mr. Edelson has been featured on Bloomberg, Reuters, and CNBC as well as The New York Times, New York Sun, and Marketwatch.com
Mr. Edelson holds a B.A. degree from Columbia University.
Money and Markets (www.moneyandmarkets.com) is a free daily investment newsletter from Dr. Martin Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Weiss Research, Inc. is located in Jupiter, Florida. For more information about our editors, or to set up an interview, please contact Jennifer Moran at 561-627-3300 or visit www.moneyandmarkets.com.
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