Copper Prices Could Double in 2011?

So I am reading various articles online about today's markets and see a link for a article
on Forbes.com which states in part:

"Copper hit a post-recession high in December, then went into retreat for a couple of weeks. There is disagreement among the experts on where it will go from here. Edward Yardeni, chief investment strategist at Yardeni Research, said during a December interview on Bloomberg TV that copper prices could double in 2011, to the $8 a pound range."

Source: blogs.forbes.com...

And look at a Yardenia biography here:

www.yardeni.com...

And more from Yardeni here:

"Economist Ed Yardeni has a list of what he says are the Black Swans events that could happen in 2011. Yardeni remains a cautious bull, he has “a 70% subjective probability” to his bullish forecast, and 30% to bearish alternatives. Here is Yardeni’s surprising take on the 2011 black swan events—I cede the floor to him:" "(1) Inflation heats up, especially in emerging economies, where the majority of consumer budgets are spent on food and fuel. The UN’s Food and Agricultural Organization is warning of a “food price shock” after its benchmark index of farm commodity prices shot up to a new record high last week. Similarly, the International Energy Agency is warning that oil prices “are entering the danger zone for the global economy.”

Source: www.foxbusiness.com...

Here's another viewpoint on copper:
www.bloomberg.com...

So the question is do you agree that copper will probably double in value? From its current price of around $4.30 per lb. to over $8.00 lb ? And if so, what effect will that have on a variety of consumer/electronic goods that are produced with same? And a thing as small as the penny... will it even continue to exist? (Considering that it cost 1.79 cents to make a penny in 2010 because of the cost of the penny's material and production.)

Source: en.wikipedia.org...(United_States_coin)

idk but i just may go buy a bunch of copper...
now where do i buy copper?

reply to post by iSHRED


Depends upon how much money you want to invest in that, since it is normally sold by the ton.
Smaller "consumer type" purchases can be made from something as simple as going to Home
Depot or Lowe's and purchasing copper wire, or purchasing copper pennies made from 1909 up until 1982 which contained 95% copper per the data below from the wikipedia link posted in my OP.

(Penny Composition)
1793–1857 100% copper
1857–1864 88% copper, 12% nickel (also known as NS-12)
1864–1942 1946–1962 bronze (95% copper, 5% tin and zinc)
1943 zinc-coated steel (also known as steel penny)
1944–1946 brass (95% copper, 5% zinc)
1974 Experimental aluminum variety (test strikes only, not circulated)
1962–1982 brass (95% copper, 5% zinc)
1982–present* 97.5% zinc core, 2.5% copper plating

a little late to buy copper....buy overall...the commodities will stay up no matter what inflation or the global fundamentals do.....at 2.80......that was the buy as it was two times down around there after the tell-tale run up....google elliott wave patterns if you want..!

Originally posted by GBP/JPY
a little late to buy copper....
------------------------------------------------------------

Why?

edit on 22-1-2011 by manta78 because: (no reason given)

Copper theft is already a huge deal where I live in Northern California. Thieves will tear apart anything to get to the copper wiring inside, irrigation pumps, railroad crossing signals, they don't care.
If copper goes up even more, it will be great news for all the tweekers around here.

reply to post by jlv70


I had to look up that word tweekers,
and found "met users" as its definition
in the urban dictionary, so ok..... guess
they have to do something between their
hits.....and you are right; that problem
will probably increase as copper becomes
more valuable.

Originally posted by iSHRED
now where do i buy copper?

Several new copper ETF's are due to emerge in the next couple of months led by JPM, BlackRock Asset Management, and Goldman Sachs to name just three. Existing supply deficits related to Chinese stockpiling, and a series of labor strikes in copper producing countries like Chile, Peru, and Mexico are sure to be exacerbated by the additional off-take from these new investment vehicles. I think fading JPM on copper prices in the near to mid-term could be hazardous to your financial well being.

Commodities, Currency On Collision Courses

With the recent JP Morgan run on the physical metal blowing up prices, and exciting rumors of an attempted market corner, copper is being portrayed as the newest “hot commodity.” But copper’s rise is nothing more than another treadmark on the highway to heaven for commodities—especially gold and silver—signaling the other drivers that the race to the greatest wealth transfer in history is on! - More

Sidebar: JPM Corners Copper Market, LME Says Not To Worry, All Is Good

reply to post by manta78


Anything is possible.

A double up from here? Would have to be a real run, entirely possible though. Also entirely possible it gets cut in half.

Off topic, but I believe you have a much better chance of a double in Natural Gas, in fact I believe this is easily the most undervalued commodity currently. If I was a betting man I would probably have to short Crude and go long NG.

reply to post by OBE1


Thanks for that info. Of course, who else but J P Morgan?

I liked this article also which was titled:

"JP Morgan revealed as mystery trader that bought £1bn-worth of copper on LME"
8:30AM GMT 04 Dec 2010

"The American investment bank JP Morgan is the mystery trader that grabbed more than half the copper on the London Metal Exchange, The Daily Telegraph has learned."

Source: www.telegraph.co.uk...

I'm taking all my pennys to the scrap yard for salvage price if that happens. I have a few pounds of them.

I also think they are expecting the gold bubble to burst soon. It's gone up too fast.