Lawrence Roulston of the widely followed Resource Opportunitites group has put some perspective into the recent metals markets of late, reminding US investors to keep their eye on the larger forces at work in the markets and not the day to day price gyrations. We have excerpted the following paragraph, which we find especially prescient with the full article following.
“While metal prices have soared, prices of the junior companies in the base metals sector have barely budged. It is only a matter of time until there is more action in that space. This quiet period is the time to build positions.”
Investors in the Western world remained focused on the US economy and on day to day headlines. That narrow and near-term focus misses the big picture in the metals markets.
The copper price chart for the past year is the best indicator of what is happening in the metals markets in the real world.
Before the financial crisis, analysts projected a long term average copper price of $1.25 to $1.50. Yet, copper only dipped to that level briefly at the bottom of the worst recession in seven decades.
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