1320,
Thanks for the response.
IMO, the intent of the what might accurately be described as global QE, is to grow the economies of the involved countries. More currency chasing the resources to get the job done should bring on fresh stockpiling, while the prices are low and not yet reflecting the recent increase in world money supplies.
Gold is up and will not fall too far backwards for too long of a time during bouts of profit taking and "corrections." I expect copper to behave essentially the same - not too much potential for a backward move in price where copper is concerned.
Everything priced in US dollars is headed up, given the market demand remains stable. However, I see demand for copper on the rise since all commodities will now be on the rise, regardless that QE will help stimulate some economies, provided the banking systems allow business accessibility to the newly-pumped-in money.
Does this increase the value of shares in a good copper producer like TRQ? The market will answer that question, but one would think prices of all good commodity shares will be on the rise. This includes TRQ, based on current production, regardless if the Mongolian project bears fruit or not.
To me it seems like the market for TRQ shares might be a bit manipulated. In the face of a bull-copper market, TRQ's production will be sold for more, future reports will show improved numbers, and where are the investors who want to join the party, and the covering shorts driving TRQ's SP higher?
41M shares short of 1B shares outstanding is 4% short not counting any naked short positions... That's a pretty significant bet against TRQ going to a new high. As copper embarks on its assent to $4, $5, and beyond, what will TRQ's SP be as fresh money flows into this good commodity producer? (...Mongolia or no...)
I think it is a good place for the shorts to go long. When TCK was recently in the $3 range it went to $50 plus pretty darned fast, after solving the issues that caused it to plunge. You might very well see the same sort of action here with TRQ, and TRQ followed TCK pretty darned close in the move too.
I guess time will tell.
GLTA TRQ longs!