SOURCE:[Kitco News] – After rising stoutly in early 2013, copper prices were knocked off their highs this week, but market watchers said the fall is only temporary.
Better-than-expected Chinese trade data and a slow, but ongoing economic recovery in the U.S. helped copper prices rise in early February to their highest levels since October. Nearby March copper futures on the Comex division of the New York Mercantile Exchange rose as high as $3.7820 a pound on Feb. 5. Since then prices have stair-stepped lower, with the market getting hit along with other commodity markets on Monday.
“The market got ahead of itself. It takes a while for the good economic data to filter through to the physical demand,” said Robin Bhar, head of metals research at Societe Generale.
Commentary: Last week was certainly a bearish time for metals, copper included. Commodities like copper do experience their ups and downs, which is why investors can’t take one bad day and panic sell.
In the long term, copper is poised to do very well considering its many uses and limited supply. Copper bullion investments (coins, bars) are becoming increasingly common due to surging demand, decreasing supply, and the other wild card, inflation. Many analysts maintain that copper will perform as well as platinum in the years ahead, partially due to the inflationary environment in the U.S. and around the world.