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The Good Doctor is still 420 friendly

Three weeks ago in “Copper: 420 Friendly*” we made the obvious point, but it continues to get lost in the daily noise of a miners’ market full of nerves and spooked by sharp price moves. Despite prophets of doom screaming stagflation and no end of bearish warnings of its impending downfall, Dr. Copper’s price in United States Dollars has held the U$4.20/lb line and is back, catching bids higher. Now for sure there’s a long list of sketchy juniors out there with the word “Copper” in their corporate titles that are only too willing to exchange their worthless paper for your cash, but you don’t even need to wonder about whether those vehicles are rip-offs or not with copper where it is. Easier and safer is to find a beaten-down copper producer to buy, as it would take a large extra helping of managerial stupid for a producer not to make good coin with copper over U$4.00/lb.

Filter out the noise and find a few fish in barrels to shoot, instead of chasing fairy stories made up by perennial scammers. Just buy a copper producer or two, let their quarterly financial results do the work and go fishing, or stop reading this blog that only adds to the noise and find a decent novel to read, instead. Just because your humble scribe has OCD about the insanity that goes on in this sector, it doesn’t mean you have to suffer as well.

9 Comments

    With the Fed hiking rates aggressively, copper, gold, silver and other metals will most likely drop further before finding a bottom. Imo

    Reply

      No shame in being wrong, Harry (I should know). What’s more, according to the theory playbook your position is sound enough. However, the point I’ve been whacking on is that copper really is different. It’s a weak link in China’s growth plans, the only one they have to import in large quantities (and it will remain that way). It’s always annoying to speak wisely about reasons for a breakout after the event, so with that in mind it’s now fairly clear that the end of the Covid vacation in Shanghai is the driver behind today’s price pop.

      Reply

    $4.50 now!

    Squeeeeeeze

    Reply

    I be OCD too. Nice turnaround in HG …
    robt 14/05/22 8:08 am
    Also fun: the commercials have gone long for the last two weeks; the specs are short. Commercials long, specs wrong? Most often. Comparing 1 yr charts of COTs and price can be a useful tool; better than seasonals which tend to work only when you don’t play them.
    https://snalaska.us/cot/current/charts/HG.png
    Not a coincidence:
    https://tradingeconomics.com/commodity/copper

    Reply

    “it would take a large extra helping of managerial stupid for a producer not to make good coin with copper over U$4.00/lb.” – Like Copper Mountain? T.CMMC

    Reply

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