Copper Diggers Dislodge Gold Peers
Source: Mineweb, Barry Sergeant (4/3/09)
". . .copper miners around the world are making profits, at least on a cash cost at-the-mine basis."
Copper prices have been on a rip; after collapsing from record highs of USD 4.08/lb in mid-2008 to USD 1.28/lb in December, prices have risen to just under USD 1.90/lb, a level at which close to 100% of copper miners around the world are making profits, at least on a cash cost at-the-mine basis. Gold bullion, on the other hand, has been wont to find itself vulnerable to downward price pressure as investor risk appetite increases in proportion to the perceptions that the heat is cooling on the "global financial crisis."
Copper purchases by China, by far the biggest market for the metal, have been showing signs of sustainable stability and indeed increases, and copper stocks around the world have been falling.
Investors have been switching heavily from listed gold to copper stocks for more than a month, although inflows to the gold grouping have remained positive over the period.