Base Metals Gain
Dec 12th, 2008 | By Doug Casey | Category: Financial Newshe base metals were all in the green on Thursday. Copper was higher from the late pre-dawn hours straight through the day, only just coming off its intraday high late to finish at $1.4955/lb., up 2 cents.
Nickel was strongly higher until late morning, then leveled off and cruised to a close just off the $5 mark at $4.9222/lb., up 68 cents. Zinc had some sharp ups and downs but ended up less than a tenth of a cent, at $0.4928/lb. Aluminum pushed to its intraday high of $0.6919/lb., up nearly 3 cents, while lead tacked on nearly 2¼ cents, to $0.4655/lb.
Copper logged a second consecutive day of gains as the combination of a sinking dollar and rising oil made all metals a more appealing investment.
With that combination, “we’re seeing some money move back into commodities,” said Brian Hicks, of U.S. Global Investors in San Antonio. “We’re seeing people getting back into these markets and looking to buy again.”
Also helping was passage by the House of the bailout plan for the Big Three automakers, although the bill faces considerably more opposition in the Senate, where the votes may not be there to get it passed in its current form.
On the downside, China’s imports of copper and copper products slid to 217,214 metric tons last month, down 6% from October, a government report said. And Copper prices will continue to fall until the outlook for China’s manufacturers improves and demand rebounds, according to Charles Cooper, of Evolution Securities in London.
Bottom feeders are paying close attention, however. Some traders think copper’s 3½-year low hit last Friday may have been it. But technicians are convinced that it’s much too early to call a longer-term bottom.
“It looks like some selling pressure has abated,” said Matthew Zeman, of LaSalle Futures Group in Chicago. “But I’d like to see copper consolidate for awhile. Then if it starts to move up I’d feel more comfortable getting long.”
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Doug Casey is a contrarian investor, sought-after public speaker and author of several books. His work "Crisis Investing" held the position of # 1 bestseller on the New York Times list for 26 consecutive weeks. Doug's unusual views on the economy - and just about everything else - have gained a huge following in the investment community, and it certainly helps that his stock recommendations of undervalued junior exploration companies have made his subscribers millions. Now in its 27th year, Doug's monthly newsletter, the International Speculator, is one of the most established and esteemed publications on gold, silver and other natural resource investments. Together with the Casey Energy Speculator, it covers a broad range of carefully selected stocks with the very real potential of double- and triple-digit returns within 12 to 24 months.