GREY:NEVDQ - Post by User
Comment by
Notgnuon Jun 18, 2021 2:17pm
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Post# 33412208
RE:Head fake
RE:Head fakeI tend to agree. The USA is sadly losing some of it's dominance to authoritarian regimes like China or Russia, but still remains a global opinion leader. When other countries witness the US transition to systems (for better or for worse) that require more copper ie.EV's and solar and heavier grid capability, they will tend toward doing the same.
A marginal change in per citizen demand in other countries (India as a prime example) will be the tail that wags the copper demand.
For NCU there is an agruement to be made, IMO, that $4.00 to $4.50 copper is actually great for the long term. Sure, $5.00 pluscopper creates huge cash flow but it starts to incent investors to expand and build other operations and thus the boom / bust cycle. Either way though NCU is rediculously under priced.
Cheers,
N
marketsense wrote: US$ strength based on next yr possible int rate increase(s) was enough to spook speculators
out of their long copper positions. That's what its all about. Nothing else has changed in the
supply demand dynamics for copper. Totally agree this is a beautiful buying opportunity.
The world is on track for a recovery from the pandemic and that means increased economic
activity across the board. That means increased demand for good and materials not to
mention Bidens massive infrastructure spending plan. China knows this and is trying to game
the markets with threats of releasing metals from their strategic reserves. Let them do it
because they will be back later paying top $ for the same. China is good at making threats
to scare people because they see it works, at least temporarily. Buy the dip.