The World's Copper Cauldron Boils Over

goingbroke

The London Metal Exchange (LME) raised eyebrows recently when data revealed a single unidentified trader had amassed a copper position equivalent to at least 50% of the exchange's available supply. The mystery trader's $1.5 billion move to corner a significant chunk of above-ground global supply turned up the heat on a copper cauldron that was already steeping with a looming global supply deficit. According to analysts surveyed by Bloomberg, 2011 could yield a supply deficit large enough to consume the entire 350,000-ton stockpile held at the LME. One analyst believes the overall global stockpile may tighten to within one week of consumption. Goldman Sachs' $11,000-per-ton, 12-month price target for copper stands more than 28% above the recent $8,555 price tag for December 2011 futures, which in this Fool's opinion speaks to an upside potential that has yet to filter through the market.



global copper consumption increased 8.3%

Bear

Goldman Sacks never guesses. They play the game quietly, confusing their own clients as well

as the market and end up always turning a big profit for thr house.