Rising copper price lifts resource stocks
CMC Group client adviser James Foulsham said the resource surge was being fuelled by the strong copper price.
“When the copper price rises the big resources stocks such BHP and Rio also seem to rise and when the copper price pulls back, these big resources stocks seem to lose ground,” Mr. Foulsham said. He said the demand for copper was coming from China and the general worldwide economic recovery.
“As the economic recovery takes hold, copper is finding demand as there is a push to increase infrastructure, housing and car production, he said.
The new global economy, which will create the next boom and stimulate rapid growth in standards of living, is alive and rapidly expanding; copper and other metals are commodities playing an important role in it. It is ripe for opportunity. In fact, the next economic boom will get its start in two predictable trends we can see right now: the peak spending years of the baby-boom generation and the emergence of developing countries entering into the technology demand and quality of life expansion cycle, which will certainly demand metals that cannot be replace easily, such as copper.
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