The Case of China's Disappearing Copper

Benjamin Cox |


Benjamin begins by speaking to the recent news that copper has been disappearing in China. He notes that people have been talking about copper stockpiles in China for years, and how he went to China on a trip to find it. However, when he arrived, the stockpiles always had a smaller amount of tonnage than they actually claimed they did. He then explains how the use of copper to secure loans created over-reporting of the amount of copper being stored, which accounts for this discrepancy. Benjamin notes that when this copper disappeared, the price of copper didn’t go up, which was due to copper no longer being good collateral for Chinese loans. However, the evaporation of copper as collateral for loans and the magical “disappearing” of copper are both going to drive up the price of copper. Benjamin concludes by noting how much he loves copper, and that this development only strengthens Oreninc’s bullish case for copper.

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
BCK:CX2 Blind Creek Resources Ltd. n/a n/a n/a n/a

Comments

Emerging Growth

Radient Technologies Inc.

Radient Technologies Inc is engaged in research, development and commercialization of environmentally responsible technology for the extraction, isolation and purification of soluble products from a wide range of materials using…

Private Markets

California Green Tree Development

California Green Tree Development LLC (CGTD) is a for-profit LLC that plans on using California’s booming market of legal cannabis products for medical purposes. As an unprecedented resource, Cannabis has…

CF0005, LLC dba Mesa-Marshall #1-2

MESA Resources, Inc. ("MESA") is sponsoring the development of the oil & gas well completion project "Mesa-Marshall #1-2". MESA, founded in 1992, is engaged in the acquisition, exploration and development…