Tuesday, April 14, 2009

Copper Soaring, China Buying (Chart)


Cash Copper, Daily Price Mark

Cash Copper Chart 414

The chart contains a single price (dot) for each trading day.

Notes:
  • The price of copper is moving up fast. This is being caused by buying out of China.
  • China is a large importer of cooper. They import about 85 percent of their need.
  • On December 24, copper traded at the low price of 124.75.
  • Today the price was marked at 212.55.
  • The price of copper has risen 70 percent in the last 4 months.
You should be looking at Freeport McMoran (FCX).  Freeport benefits from rises in the price of copper. The company is also a large producer of gold. We will cover Freeport McMoran tommorow.

You should note the effect that demand from China can have  on commodity prices. One theme that should become evident is that when China starts to demand the supply of a commodity its price is likely to rise dramatically. This will create lots of opportunites for smart investors.

There are several ways to take advantage of thirsty demand for commodities from China. These include: sector stocks, ETFs, options, and commodity futures contracts.

We will be honing in on these opportunities in the days and weeks ahead.

So stay tuned daily.
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Bob DeMarco is a citizen journalist and twenty year Wall Street veteran. Bob has written more than 500 articles with more than 11,000 links to his work on the Internet. Content from All American Investor has been syndicated on Reuters, the Wall Street Journal, Fox News, Pluck, Blog Critics, and a growing list of newspaper websites. Bob is actively seeking syndication and writing assignments.




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