Mining is an expensive business. So if commodities prices fall sharply many mines are forced to close rather than operate at a loss. When this happens supply tightens and prices begin to recover. Chris Mayer says there are signs this is happening now… and a rally in mining stocks is on its way.

The base metals were mixed in listless trading on Monday. Copper showed a gain from the pre-dawn hours to the late morning in New York, but then fell off a cliff and finished at its intraday low at $3.1145/lb., down 3½ cents from Friday.

The base metals were all mired in the red on Friday. Copper declined from the pre-dawn hours straight through until mid-morning in New York, before leveling off for the rest of the day and finishing just off its intraday low at $3.1494/lb., down nearly 15½ cents.

The base metals were all in the red on Thursday. Copper fought a seesaw battle all day, with the ayes having the final word but not enough of one to overcome the nays, as it finished at $3.4757/lb., down 2¾ cents.

The resource rich Canadian markets were in rally mode during Wednesday trading as the price of oil and gold gained ground.

The base metals were mostly in positive territory on Wednesday. Copper was up sharply to mid-morning before tailing off, but still finished with a gain at $3.5031/lb., up more than 3½ cents.

Smart Commodities UK editor Garry White says copper prices will soar in the coming years. Existing supplies are dwindling and the rush for greener hybrid cars will send demand for copper through the roof. In the short term, Garry says investors should be ready for the copper market to bottom out over the next two months, as the summer lull in trading comes to an end…

The base metals were all well into the red on Friday. Copper was off steeply in the pre-dawn hours, leveled off, but then caught another downdraught late in the day and finished just off its intraday low at $3.517/lb., down 6¾ cents.

The Canadian markets showed signs of life for a second straight session as gold and oil plays once again caught the fancy of investors during Thursday trading.

The base metals were all off to the races on Thursday. Copper started up in the pre-dawn hours and never quit, finishing just off its intraday high at $3.5849/lb., up more than 15½ cents.