The Resource Investing News survey showed a fundamental change in what investors are interested in putting their money into. Since 2009, interest in copper stocks has risen by 28 percent. Remarkably, over the past year, when copper’s rally stalled, there was still an 11 percent gain in interest.
Copper futures ended nearly flat Thursday, supported by some better-than-expected US economic data; however, futures remained under pressure due to the sentiment that the global economy is barreling towards another recession.
Copper prices staged a modest recovery on Monday, gaining 4.4 percent on the COMEX and 4.1 percent on the LME, as investors digested last week’s slide to a 14-month low as an opportunity to bargain hunt.
On Thursday, copper prices plunged as China’s released a preliminary purchasing manager’s index of 49.4, signalling that the world's largest copper consumers economy is contracting.
Copper prices continued to hover around nine-month lows following the release of more negative economic data and IMF cutback.
Copper prices closed near nine-month lows on Wednesday, but rebounded on Thursday as concerns over the Eurozone’s debt crisis eased.
After rallying aggressively in 2010- analysts and investment firms had very bullish projections for copper’s price outlook for 2011; with forecasts ranging between $11,000 per tonne to 13,000 per tonne.
In an interview with Resource Investing News, Yu-Dee Chang principal at ACE Investment Strategists Inc. attributed the recent volatility of copper prices to the “shift of investment demand in copper from small speculators to larger hedge funds.”
In an interview with Copper Investing News, when asked if peak copper is a current reality, Yu-Dee Chang, Chief Trader at ACE Investment Strategies, commented “Although the day will ultimately get here, the answer for now is probably- not yet."
Copper prices climbed over $9,500 per tonne for the first time in two-months Monday, as supply concerns ushered investors back into the copper market.
Thursday, October 27, 2011