Best of the Week
Most Popular
1.Gold Price Trend Forecast, Where are the Gold Traders? - Bob_Loukas
2.Stocks Bear Market of 2017 Begins? Shorting the Dow At its Peak! - Nadeem_Walayat
3.Betting on President Trump Leaving Office Early, Presidency End Date - Betfair Market - Nadeem_Walayat
4.Why Stock Market Analysts Will be Wrong About 2017 - Clif_Droke
5.Is This The Best Way For Investors To Play The Electric Car Boom - OilPrice_Com
6.Silver Price 2017 Trend Forecast Update - Video - Nadeem_Walayat
7.Gold Price Set For Very Bullish 2017, Trend Forecast - Austin_Galt
8.10 Things I learned From Meetings With Trump’s Transition Team - - John_Mauldin
9.How Investors Can Profit From Trumps Military Ambitions - OilPrice_Com
10.Channel 4 War on 'Fake News', Forgets Own Alt Reality Propaganda Broadcasting - Nadeem_Walayat
Last 7 days
The Mother of All Financial Bubbles will be Unimaginably Destructive when it Bursts - 19th Feb 17
Gold’s Fundamentals Strengthen - 18th Feb 17
The Flynn Fiascom, the Trump Revolution Ends in a Whimper - 18th Feb 17
Not Nearly Enough Economic Growth To Keep Growing - 18th Feb 17
SPX Stocks Bull Market Continues to make New Highs - 18th Feb 17
China Disaster to Trigger Gold Run, Trump to Appoint 5 of 7 Fed Governors - 18th Feb 17
Gold Stock Volume Divergence - 17th Feb 17
Gold, Silver, US Dollar Cycles - 17th Feb 17
Inflation Spikes in 2017, Supporting Gold Prices Despite Increased Odds of March Rate Hike - 17th Feb 17
Roses Are Red... and So's Been EURUSD's Trend - 17th Feb 17
Gold Trade Note Sighted - 17th Feb 17
Gold Is Undervalued Say Leading Fund Managers - 17th Feb 17
NSA, CIA, FBI, Media Establishment 'Deep State' War Against Emerging 'Trump State' - 16th Feb 17
Silver, Gold Stocks and Remembering the Genius of Hunter S. Thompson - 16th Feb 17
Maps That Show The US’ Strategy In Asia-Pacific - 15th Feb 17
The Trump Stock Market Rally Is Just Getting Started! - 15th Feb 17
Tesco Crisis - Fake Prices, Brexit Inflation Tsunami to Send Food Prices Soaring 10% 2017 - 15th Feb 17
Stock Market Indexes Appear Ready to Roll Over - 15th Feb 17
Gold Bull Market? Or was 2016 Just a Gold Bug Mirage? - 15th Feb 17
Here’s How Germany Buys Time From China - 15th Feb 17
The Stock Trader’s Actionable Guide to Trump - 15th Feb 17
Trump A New Jacksonian Era? The Fourth Turning (2) - 14th Feb 17
Stock Market Yet Another Wall Street 'Witch's Brew' - 14th Feb 17
This Is Why You Don’t Own A Lot Of Stocks - 14th Feb 17
Proposed Tax Reforms Face Enormous Headwinds - 14th Feb 17
BBC Inside Out Tesco Rip off Offers - Determined to Lose Big Spend Customers! - 13th Feb 17
Is the UK An Economy Built on Debt? - 13th Feb 17
Stock Market VIX Cycles set to Explode in March/April 2017 – Part 2 - 13th Feb 17
Stocks At Record Highs - Will Uptrend Accelerate? - 13th Feb 17
US Dollar: 'Rumors of My Death are Greatly Exaggerated' - 13th Feb 17
Is This The Top Commodity Play For 2017? - 13th Feb 17
Trump a New Jacksonian Era? - 13th Feb 17
Stock Market at High Tide - 13th Feb 17
Channel 4 War on 'Fake News' Ends - The New News Age - 12th Feb 17

Market Oracle FREE Newsletter

State of Global Markets 2017 - Report

How to Profit From A Potential Doubling in Copper Prices

Commodities / Copper Feb 06, 2013 - 08:30 AM GMT

By: DailyWealth

Commodities

"I think copper has at least 50% upside from today's price..." legendary analyst Adrian Day told me recently.

"I wouldn't be surprised to see the price double by the end of the decade."

When Adrian talks commodities, I listen... He's written his Global Analyst newsletter for over 25 years. At one time, it was one of the most popular investment letters in America, with over 60,000 subscribers. And for a decade now, he has focused on commodities for customers of Adrian Day Asset Management.


Today, Adrian has his sights set on copper... Over coffee last week, he explained why copper prices could soar. He also shared his favorite way to profit from it. Here's the story...

Adrian believes there's a big opportunity in copper. It's a simple story of supply and demand...

"In recent years, we've seen a record copper price and record demand. Yet production has actually declined," Adrian told me. "Output from Escondida, the world's largest producer, is down 25% over the last five years."

Adrian explained there are currently 82 new mines set to come online by 2020. "About 80% of them had their start dates delayed in the past 12 months. The future supply of copper is anything but certain."

With uncertain supply, a "pop" in demand could easily send copper prices soaring. And Adrian sees China as an obvious source of continued demand growth...

China's copper demand has tripled in the last 15 years. Based on where the country is in its development cycle, I believe demand will triple again over the next 15 years.

By 2020, world copper production won't even meet China's demand.

Adrian's story here is simple. It's Economics 101.

With demand exploding and supply decreasing, the copper price has only one way to go... higher. Again, Adrian says prices could double by 2020.


As investors, we have one simple way to profit from a rising copper price. Longtime readers are familiar with this opportunity... When copper prices increase, shares of Freeport-McMoRan (NYSE: FCX) explode. Take a look...



For example, shares of Freeport soared from below $10 to near $60 in about two years (roughly 2009 through 2010). When copper takes off, shares of Freeport can go nuts.

Freeport is currently a "buy" in our True Wealth newsletter. And Adrian says the stock is one of his top ideas right now. It's easy to see why...

The stock is dirt-cheap. As I write, it trades for just 7.5 times next year's earnings. The company also pays a 3.5% dividend.

The company is cheap today because of a recently announced acquisition of Plains Exploration & Production (NYSE: PXP) and McMoRan Exploration (NYSE: MMR). Freeport shares fell 16% on the news. But Adrian believes this offers a fantastic buying opportunity...

Freeport acquired fantastic oil and gas assets in this deal. The potential is enormous, and they didn't overpay for it. We've been buying at the depressed prices, and we'll continue to do so.

Even with Freeport's diversification into oil and gas, I expect the company to continue trading in-step with copper. If Adrian's forecast is correct, that could mean enormous gains like we have seen in the past with Freeport.

Today, we have an opportunity to get in cheap. It will surely be a bumpy ride. But long-term, both Adrian and I expect big gains in shares of Freeport.

Good investing,

Brett Eversole

P.S. I highly encourage you to check out Adrian's excellent book: Investing in Resources: How to Profit from the Outsized Potential and Avoid the Risks. It's the best primer on making money in commodities that we know of. To learn more about Adrian, click here.

http://www.dailywealth.com

The DailyWealth Investment Philosophy: In a nutshell, my investment philosophy is this: Buy things of extraordinary value at a time when nobody else wants them. Then sell when people are willing to pay any price. You see, at DailyWealth, we believe most investors take way too much risk. Our mission is to show you how to avoid risky investments, and how to avoid what the average investor is doing. I believe that you can make a lot of money – and do it safely – by simply doing the opposite of what is most popular.

Customer Service: 1-888-261-2693 – Copyright 2013 Stansberry & Associates Investment Research. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This e-letter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of Stansberry & Associates Investment Research, LLC. 1217 Saint Paul Street, Baltimore MD 21202

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Daily Wealth Archive

© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife