Investors: More Info Here
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Investors: More Info Here |
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Copper
Investors can expect 2012 to be another year of rapid price gains for the red metal. We expect accelerating demand and shrinking stockpiles to buoy the metal above $11,000 per tonne and prices could spike substantially above these levels, most likely in late 2012.* In 2012, we can expect the metals to diverge and follow their own fundamentals, and this is exactly why copper will do so well. Robust demand from China and emerging markets combined with shrinking production will drive up copper prices, and exhaust almost all exchange stocks. Next year, demand will expand 6.4 percent to 19.98 million tons, the biggest gain since 2007. Next year, supplies will be under even more pressure enhanced pressure as the new physical commodity backed ETF's (Exchange-Traded Funds) come online. JP Morgan Chase, who will soon, be launching an exchange-traded fund in copper, bought up more than half of all the reserves on the London Metals Exchange. Other exchange funds will be offered by BlackRock and ETF Securities. These funds will back their investors with actual physical supplies of the metal, taking away the much needed copper from those who actually need it from the limited supply pool. Stockpiles now sit around 466,500 tonnes, down by around one third since early April and the largest slump in inventories since 2004. The supply situation will only tighten as miners cope with exhausting reserves. It is hard to imagine a decline in prices for the metal as limited supplies from mines exacerbate a shortage next year. Average ore grades have fallen about 26 percent in the last two decades. Demand will outpace supply by 367,500 metric tonnes next year. Stockpiles may drop to an all-time low of less than one week's usage. Copper is a chemical element with the symbol Cu (Cuprum) and atomic number 29. It is a ductile metal with very high thermal and electrical conductivity. Pure copper is soft and malleable; an exposed surface has a reddish-orange tarnish. It is used as a conductor of heat and electricity, a building material, and a constituent of various metal alloys. The metal and its alloys have been used for thousands of years. In the Roman era, copper was principally mined on Cyprus, hence the origin of the name of the metal as сyprium (metal of Cyprus), later shortened to сuprum. The vast majority of copper (98%) is used as the metal, but is often too soft for use. Numerous copper alloys exist, many with important uses. Brass is an alloy of copper and zinc; cupronickel is an alloy of copper and nickel. Bronze usually refers to copper-tin alloys but can refer to any alloy of copper such as aluminum bronze. Copper is one of the most important constituents of carat silver and gold alloys and carat solders used in the jewelry industry, modifying the color, hardness and melting point of the resulting alloys. Copper's electrical properties are exploited in copper wires and devices such as electromagnets. Integrated circuits and printed circuit boards increasingly feature copper in place of aluminum because of its superior electrical conductivity; heat sinks and heat exchangers use copper as a result of its superior heat dissipation capacity to aluminum. Vacuum tubes, cathode ray tubes, and the magnetrons in microwave ovens use copper, as do wave guides for microwave radiation.
*Past performance, future projections and past mining operation life expectancies are not a guarantee of future results. All rates of return and past results provided herein are for historical comparison purposes only. Investments involve financial risk of loss and may not be suitable for all investors.  About Us Gold Silver Copper Diamonds Lithium Investors Contact Us
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