Copper expected to hit new highs next year
The price of copper has gone up more than 20 percent this year, hitting a record high of US$8,966 a ton earlier this month. This is on the heels of its spectacular 140 percent increase in 2009.
According to analysts, the primary drivers of copper's record-breaking run are:
Increasing demand. Demand for copper—which is primarily used in the electrical and construction industries—is going up, especially in the fast-growing Chinese manufacturing sector.
Decreasing supply. Copper ore grades at existing copper mines are deteriorating, while other major projects are hobbled by delays and labor disputes, cutting world copper production to approximately 80 percent of capacity. Not enough new mines are opening to meet the rising demand—in early November, the Canadian government rejected the British Columbia Prosperity gold and copper mine, which would have been a major new source of copper in Canada.
Weakening U.S. dollar. As ongoing economic stimulus measures increasingly burden the U.S. dollar with U.S. government debt—the U.S. Federal Reserve recently announced that another $600 billion will be printed between now and June 2011—investors are increasingly turning away from depreciating paper assets and investing in metals, such as gold and copper. Also, a weak greenback makes metals prices in U.S. dollars less expensive for holders of other currencies, motivating manufacturers to buy.
Low interest rates. With returns in many markets reduced by low interest rates, copper's growth provides much more attractive returns for investors.
The eurozone debt crisis. As the common European economy falters, investors are dropping their euros and other paper assets and buying hard assets.
All of these drivers set copper up for a bullish 2011, although copper has declined since mid-November (as have most other commodities) as high Chinese inflation has prompted the Chinese government to increase bank reserves and raise interest rates, reducing projected demand for materials. Also, European manufacturers' demand for copper is declining as eurozone debt woes discourage investment in the European manufacturing sector.
However, analysts expect these influences to be temporary, as Chinese inflation control is expected to be swift—restoring Chinese industrial demand to its previous levels in early 2011—and the eurozone will likely to bolster investor confidence by implementing solid debt-management measures.
Considering that copper almost reached the $9000/ton mark this month, analysts predict copper to spend the first half of 2011 at or near its recent high, and hit a high mark of $11,000 to over $12,000 a ton before the end of 2011.
Copper has seen impressive gains over the past two years, and indications are that the next two years will see new records being set.
Questions and Answers
An investor is supposed to be compensated for every level of risk he takes with a higher level of profit. This logic only holds water when it is assumed that the economy is stable, the political climate is stable and there is no social unrest. In times when these assumptions do not hold it automatically follows that most investments will not even be able to compensate for the amounts that were initially invested in them
Instead of gold or silver bullion, many investors opt for precious metals mining stocks because they normally yield higher percentage increases than gold and silver when metals prices rise. However, investing in precious metals stocks carries risks beyond buying gold or silver bullion.
Comparisons between investments in precious metals and investments in financial instruments like stock are always a subject of debate in the financial world. In this decade particularly stocks have shown impressive performances in the various stock exchange markets in the world from the FTSE to the Dow Jones.
The gold market has evolved as one of the most trusted investment sectors in world economy. There are various factors that have contributed to this wide spread acceptance. Inspite of the new investment options promoted by companies, people tend to stick with gold investment.
The gold market has evolved as one of the most trusted investment sectors in world economy. There are various factors that have contributed to this wide spread acceptance. Inspite of the new investment options promoted by companies, people tend to stick with gold investment.
Austria is home to some of the highest excellence of gold bars. It includes bullion gold and bullion silver. There are some of the rarest bullion bars in gold and silver available at a major metal dealer.
In USA, one of the leading brands that offer diverse and high quality products promoting proper hygiene is Difresh USA. If you are looking for the best opportunity to grow and have the opportunity for a new business Difresh USA can help you for they are looking for Exclusive Local Distributors
Getting clean and refresh doesn't sacrifice the place where you are for it should be a habit. Having a healthy body will allow you to do things right and good. And no matter where you are you should practice a healthy and proper hygiene even in little things you do.
Maintaining a healthy and proper hygiene badly needs products that are truly effective and could truly answer our need for this. No matter where we are and at anytime we want to get clean we basically need these products right away and only Difresh USA can supply these in a very easy way
The key reason why some firms thrive while some implode during an financial recession is still a puzzle to many people business-owning business owners. Some wrongly assume that all businesses should suffer via recessionary cycles. But the truth is that some companies are usually essentially recession-proof, and it is not necessarily because they are much larger, better known, or a lot more generously capitalized.
Companies like Arch Coal (ACI) and Massey Energy (MEE) watched his or her stock climbed.
Nothing is comparable to the love and care a mother gives to her child. Every mother looks for the best and the most easing stuff not only for the kids but also for the parents.
Nowadays, there are many ways to achieve the college degree. One is not limited to a regular collage program, there are choices that give someone the opportunity to get the same college degree spending less time and money and at the same time allows him or her a lot of personal flexibility that are otherwise, if not impossible, difficult.
Motivation is a one word that we all hear multiple times in a day. It's a one small word that can change your entire life.
Karaoke is a way to turn a party fun place. A true karaoke fun could be lurking anywhere. It might be a wedding reception, a party with friends, or probably at a restaurant you visit after a long day of working at your workplace.
New York is a city overflowing with elements of mirth and merriment. One of those elements is definitely karaoke NYC party making idea.
Discuss this Article
