The Copper Bull is Intact

By Otto Rock

Copper broke out and rose above the U$2.90/lb line on February 20th. Since then, and even after its soft day or two last week, the contract has traded above that line on every day to date. It took seven months to break out of its rather stagnant trading range, but now it’s out this is obviously no flash in the pan.

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The move up this morning is welcomed by your humble scribe because I haven’t been bullish on the metal all this time just on a coin-flip. Let the naysayers talk you into their narrative of soft Chinese demand, round these parts we ignore the lip-flappers and work on the hard data, they say copper hasn’t even begun to reach its fair price.

The other advantage to this sub-sector is that there are real trade options in the junior mining companies exposed to copper. It’s not that quality companies abound (and there are always the dogs and moose pasture salespeople waiting for you), but search around and there are significantly undervalued companies with real and valuable copper assets on offer. I’ve just added a 5th to my portfolio and I’m longer copper than gold by quite a stretch now.

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