Take copper. Already mentioned before here.
Copper fell more than 70% from its peak price. The bottom was in December 2008 around 1.25 USD per pound.
The amount of copper in storage peaked at the same moment at 548.000 metric tons.
But the last two weeks this volume in storage went down. A little more than 5%.
Than there is Freeport McMoRan (ticker: FCX). In May 2008 the share price was 125 USD. Now the shares are trading around 33 USD.
This means that you can buy Freeport’s copper reserves for 13 cents a pound and get all molybdenum, silver, gold and cobalt for free.
Is FCX a good company? Not yet after the disastrous acquisition of Phelps Dodge in 2007, but the tide seems to turn slowly.
Even more important: another commodity turns around.
Sphere: Related Content
No comments:
Post a Comment