GREY:MLKKF - Post by User
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24~Karaton Jun 04, 2006 2:46pm
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Post# 10943851
$5.00 - $6.00 Copper
$5.00 - $6.00 CopperThe copper price chart below shows its CPI-adjusted price through the decades. It was complied early this year when copper still stood at $2.50, while its current plot would be closer to $3.50.
Certainly, there is ample precedent for copper to be fairly valued at the current day equivalent of $5.00 to $6.00 per pound, and that is the range that I expect it will inevitably attain. Slowly but surely, the analyst community is waking up to this fact, but their thinking is still decades behind the current price. Recently Yamana Gold produced a bankable feasibility study for a copper gold deposit, and they were forced to value their copper at $1.10 a pound. Yamana’s response was to forward sell production at nearly triple that price.
One sign that the analyst community is beginning to wake up came last week when the BMO Nesbitt Burns analyst raised his price forecasts for base metals by 40 percent for 2006 and by 58% for 2007. If BMO is using the same 2007 number as most other analysts, this is still quite a discount, but it is an encouraging sign that reality has begun to sink in to these analysts.
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