Tuesday, October 12, 2010

Will copper outperform gold?


Interesting analysis on Mineweb.com today suggesting that the market is treating gold as if its price has peaked but copper will continue to rise.

The premise is that "emerging market economies are likely to continue outperforming", and these markets, especially China are "rapacious users of copper." They note that copper is generally used in economic development, not held for financial purposes. Copper is at $3.78 per pound. [right, native copper. Credit, USGS]