"the facts are telling us to ignore news articles that cite "experts" who tell you to avoid copper and copper stocks because inventory levels are high."
Accordng to Goldman your warehouses are off 200,000 big ones You might learn something by listening to the CEO of Caterpillar instead of your "usual selective posting". Copper and copper stocks hit a definite bottom. By the way, I post info on relevant copper sector info so pull out your dictionary on the definition of a pumper and while you're at it read up on basher and explain to us given you've never owned RDK, never will, why you're here. I got notes sent all about you pal, who you are, where you are, why you are, so you know that threat a while back?,..I'm told there's enough there for one of Ontario's finest to knock on your door so keep it clean going forward.
"Copper in warehouses monitored by the Shanghai Futures Exchange is being drawn down, it said. The bank estimated bonded stockpiles at 510,000 tons from 715,000 tons in early March and noted that futures in Shanghai are in backwardation." Read more below .
By Chanyaporn Chanjaroen - Apr 22, 2013
Goldman Sachs Group Inc. said that the selloff in copper was “overdone” and it remains bullish on the metal at a lower price. The bank cut its three-month estimate to $7,500 a metric ton from $8,000, lowered its six-month prediction to $8,000 from $9,000, and the 12-month forecast fell to $7,000 from $8,000, Goldman analysts including London-based Max Layton and Hong Kong-based Roger Yuan said in a report dated today. Copper for three-month delivery traded at $6,905 today.
The metal has lost 13 percent this year and slumped into a bear market as Europe struggled with its debt crisis and growth slowed in China, the biggest metals consumer. Europe and China account for about 60 percent of world consumption. Inventories tracked by the London Metal Exchange almost doubled in 2013.
The forecasts have been downgraded “to acknowledge the increasing willingness of the market to price future surplus ahead of time” and the risks to growth in the broader emerging market, the report said. While prices have suffered on concerns China’s economy may slow, the bank said the country’s “underlying cyclical growth is likely stronger than the headline figures suggest.”
Copper in warehouses monitored by the Shanghai Futures Exchange is being drawn down, it said. The bank estimated bonded stockpiles at 510,000 tons from 715,000 tons in early March and noted that futures in Shanghai are in backwardation.
Ignore the Copper Bears… By Matt Badiali, editor, S&A Resource Report
About once per year, the media – and investment analysts who should know better – try to scare the heck out of commodity investors with claims that "copper inventories are soaring." The thinking is that if copper inventories are rising and near all-time highs, then copper is headed lower… and so are copper-mining stocks.
Today, I'll show you why those claims are wrong. And I'll show you why, counter intuitively, high copper inventories are not a reason to sell your copper miners. If anything, high copper inventories are a reason to buy copper miners… When supply hits its peak, the wrong-headed pundits say copper prices must fall. But as we can see from the chart below, by the time supply peaks, the copper price is nearly at its bottom.
London Metals Exchange (LME) warehousing system. regularly booms and busts.
It sounds odd to most folks that high copper inventory levels tend to coincide with price bottoms. But that's the nature of the markets. By the time the mainstream press reports on something, chances are good prices will have already factored in the story. That's why it doesn't make sense to trade in the direction of news headlines. It makes sense to study the numbers and facts.
In this case, the facts are telling us to ignore news articles that cite "experts" who tell you to avoid copper and copper stocks because inventory levels are high. History shows that these high inventory levels tend to mark buying opportunities, not selling opportunities. The one time in 2011 that inventories were high and copper prices declined, the decline was shallow.