As the Chinese financial authorities pump more money into the system, many mining stocks are looking for a strong move up in copper prices going out several years.
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New York, NY (PRWEB) March 01, 2012
Copper prices have bounced off the lows last year and, according to the article, The One Stock You Need to Know to Play the Copper Boom, by Sasha Cekerevac, contributor to Profit Confidential, there are many signs that this move up is only the beginning of a move that will push up mining stocks.
In his article, Cekerevac notes that inventories of copper are sitting at lows not seen in over two years.
“This is due to several reasons, but a large part is that precious metals miners had lower output of copper, because labor strikes hit several large mining stocks,” says Cekerevac.
The copper market is improving, according to Cekerevac. He cites one reason as being the huge amount of financial stimulus being pumped into the global economy by central bankers around the world.
“The precious metals market looks 12-18 months into the future,” says Cekerevac. “This added stimulus is forecasted to increase prices through inflation and boost economic growth levels. This can only benefit mining stocks extracting precious metals.”
Cekerevac notes that China consumes almost 40% of copper. “As the Chinese financial authorities pump more money into the system, many mining stocks are looking for a strong move up in copper prices going out several years.”
The recent deal between BHP Billiton Ltd. and Rio Tinto plc to spend $4.5 billion in expanding their Chilean copper mine is, according to Cekerevac, a sign that the firms are very positive about the future prospects in the precious metals space.
Cekerevac highlights that Southern Copper Corporation might be interesting to long-term investors, as the company has the opportunity to exceed estimates for the next few years if copper prices continue their strong move upwards.
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market... before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.
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