Tuesday, April 14, 2009

Base metals names thunder on and up

As a follow-up to our March 12 post "Gold & silver vs. copper & uranium":
...Trends over the past few days show, however, that investors have made heavy switches out of gold and silver names, and into copper names, among other mining subsectors, with uranium favoured next. The global investible market value of "specialist" copper miners is in the order of USD 48.7bn....

We have this article(also sourced from MineWeb):
The broad, heavy switch out of listed gold and silver stocks has now prevailed for two weeks, benefiting mainly specialised miners of copper, zinc and nickel.

Gold bullion prices may have perked up over the past few days, but investors have continued a broad sell off of listed gold and silver stocks, in place for two weeks now, mainly to the benefit of specialist miners of copper, zinc and nickel.

On Tuesday, copper prices made an assault on USD 2.20/lb before profit taking took the price lower, but these levels are way above multi-year lows of USD 1.28/lb, seen in December, and more than half the record highs of USD 4.08/lb seen in mid-2008. Other base metals have also moved broadly higher in the past few months, even aluminium, which remains the most problematic industrial metal on the supply-demand front.

Where the MSCI Barra dollar index for all global equities has so far scored a bounce of nearly 27% from multi-year lows seen late in 2008, the top 100 global miners, measured on a value basis, are up by 104% on average, measured on a weighted basis. The top 100 performing mining stocks have jumped by 313% on average, from lows. Among industry groups, the most resounding bounce has been scored by copper miners, at 174%, overhauling the top position held for months by listed gold stocks, currently with a number of 131%.

Copper-focused listed miners have seen the way led up the price ladders...MORE, including charts. Even nickle has flattened out, tin appears to be the only base metal still in a downtrend.