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December 29, 2005
Strong metals today and for 2006, Thurs., Dec. 29, 2005, 8:30 AM
Copper prices have been at all-time record highs today ($2.17) on NYMEX, so about 28,000 contract miners of government-owned Codelco in Chile are ready to strike if the Company doesn't authorize a 500,000 peso (~$972) bonus to each worker. As I see it, such a demand is wage inflation, i.e., the high price begets higher prices. I expect we'll see a lot of this in 2006.
Copper prices are presently ~$2.1675 for the January contract. Delivery is a problem.
Gold too is having a bullish run up, presently at $519.50, up +3.20 on the Feb-06 contract. Just like the base metals (especially copper), there is no rapid ramp up in supply foreseen from the gold miners in 2006. So prices will stay high.
The coming year will see record corporate cash flow and earnings for the copper and gold producers. Traders ought to consider buying on every pull-back. In China, 2006 will be the Year of the Dog, but in my books it will also be the Year of the Metals, like 2005 was the Year of the Oils.
Posted by Posted by Bill Cara on December 29, 2005 08:30:49 AM | Category: Gold