Copper Prices Rally on QE2 Expectations

Source: Copper Investing News, Leia Michele Toovey (11/2/10)

"Copper settled at a 27-month high Tuesday."

Copper settled at a 27-month high Tuesday, buoyed by expectations for a second round of quantitative easing (QE). Currently in meetings, the FOMC is widely anticipated to announce a Treasury-purchasing program worth ~$500 billion. QE2 could prove especially beneficial for copper prices; some investors believe the program will raise copper demand by improving construction and manufacturing sectors, which are key end users of the red metal.

Copper prices were given extra impetus from a weak dollar, which retreated 1% relative the euro Tuesday. On the Comex, copper for December delivery settled up 1.4%, at $3.8390/lb.

China's appetite for copper shows no sign of slowing down. The country's copper demand may climb to 8.5 million tons (Mt.) in 2015 from 7.5 Mt. last year, Zhang Fengkui, head of the non-ferrous metals office at the Ministry of Industry and Information Technology, said at a conference. At the same time, rising labor costs have analysts predicting that the Asian country will import proportionally more of the high-grade copper scrap.

In order to keep operating costs in check, Chinese companies will avoid skyrocketing domestic labor costs by importing higher-grade copper stocks. So far this year, the metal content in imports has climbed to 39% from 18%–20% copper before 2008. The copper contained in scrap imports totaled 1.1 Mt. from January–August. The figure for 2009 was 1.2 Mt. Rising labor cost means it's no longer profitable to import scrap, which only contains 10%–20% copper.

With already tight fundamentals, copper industry experts are sounding the alarm on possible metal shortages in the following years. Copper supply has been limited and the financial crisis has delayed mine development, with projects representing >9 Mt. of concentrate struggling to find funding. Global copper-concentrate output capacity will expand by less than 2.5 Mt. from 2010–2013.

Announcing Streetwise Live! Events
Source: Streetwise Reports (07/13/2020)

Streetwise Reports is offering 100 investors—at no charge—the opportunity to meet via Zoom with executives of precious metals companies as they discuss recent developments at their companies and upcoming catalysts.

"China's export quota could be opportunity for Canadian miners"

Latin America: Six Gold Juniors Amass 100M+ Ounces
Source: Marc Davis, BNW News (05/25/2010)

Latin America, the world's last great mineral frontier for prolific gold discoveries, is proving a godsend for some lucky investors.

Mexico: Gold's Next Powerhouse Player
Source: Marc Davis, BNW News (11/03/2009)

As the world's key gold producing nations struggle mostly in vain to replenish dwindling below-ground supplies, Mexico is bucking the trend in a big way.

Where Have All the Gold Mines Gone?
Source: Brent Cook, Exploration Insights (04/14/2009)

Given the declining global gold production, mining companies’ demand for reserve replacement and the acute dearth of new gold discoveries, there is no doubt that real economic discoveries will be exceptionally valuable. . .the opportunity for stellar profits is the best it has probably ever been. Identifying the few successes, however, will require vigilant and constant technical assessment of geology and drill results, always with an eye to mine economics.

Congo Completes Mining Review, Says Majors Quit Talks
Source: Reuters (12/20/2008)

"Review process is extended an additional 45 days to allow six companies to return to the negotiating table for direct talks with government ministers."

I haven’t spoken to my old mining stock friend, noted and universally respected gold stock guru, Bob Bishop, about Rare Element in a year, but I hear he is still a supporter and very large shareholder. I don’t believe he will hold it against me to remind you that this was one of his favorite holdings when he left the newsletter writing business. . .

It's Only the Beginning for Uranium
Source: www.financialinsights.com (06/03/2005)

Dr. Richard S. Appel, author of Financial Insights, first became bullish on uranium in mid-2003, when it appeared obvious that its supply versus demand equation was fated to seriously drive higher its price. Since then, a series of events in the uranium industry has led Appel to believe that uranium prices will reach never before seen levels.

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