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.
I understand that the Reed is on budget & schedule.
A simple story of supply and demand
"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.
Read more at http://www.stockhouse.com/columnists/2013/feb/15/profit-from-a-potential-double-in-copper-prices.aspx#8gR66EAaJlmSypZL.99