GREY:NEVDQ - Post by User
Post by
rockhound3on Jan 24, 2021 10:28am
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Post# 32370560
The annual report of the Copper Study Group, tries to set
The annual report of the Copper Study Group, tries to setOut what is happening with Copper each year. From looking at the report over the years I have come to the general conclusion that it is very difficult to predict with any significant degree of certainty what will happen with copper prices.
H owever it does help understand the issue if one considers the following:
1. The significant time that it often takes to bring a deposit into production = 10+ years!
2. The on average lower grades that are available for mining.
3. The ever growing adverse impacts of climate change as reported by Bog.
4. The iincreasing regulations impacting mining.
the above are supply side aspects.
On the demand side we have the following:
5. The modernization of the world and the ever increasing demand for technology.
6. The impact of climate change on the demand side with the resultant green energy program.
No doubt there are other factors however one thing to focus on is that the demand side can And is increasing much faster than the supply side.
And while we talk about the Chinese demand, we should also consider India and Africa.
I do find that personal experiences can reinforce how one looks at things:
I can think of 3 personal experiences that
A. In 1974 I encountered a Chinese real estate agent who was carrying around a suitcase in which was a phone. The cost was $50 per month, and I asked myself = who would be willing to pay $50 per month? = DA everybody = but not my conclusion at that point
B. Working in Indonesia in 2000 where the cell phone had much greater penetration than in North America.
C. Visiting east Africa 4 yrs ago seeing the significant impact of Chinese development with
- invasion of inexpensive Chinese motorcycles & scooters, the building of modern roads, and seeing communication towers in the Serengeti.(sp).
Thus MY CONCLUSION is that the demand is and will continue to increase at a rate much higher than the possible supply side.
This should increase the price of copper to heights which might be much greater than we can imagine!
This significant increase in demand with a slower ability to fill the demand should drive up the price of .copper. Add in the special factors that Nevada/Yerington should be very good for NCU!
COMMENTS!?
Rock