Tuesday, August 24, 2010

Copper at $10K by 2012?

Credit Suisse is forecasting the price of copper to increase 34% by 2012, reaching a price of $10,000 per tonne or $4.54 per pound according to a story on Mineweb.com. This is predicated on continued economic growth in China (which just passed Japan as the second largest economy in the world) and a modest economic recovery in the West.

If that sounds unrealistic, recall that in the past year, copper rose 150% from $1.30 to $3.30 per lb.

Arizona produces about 65% of the U.S. demand for copper and two potentially huge new mines are seeking regulatory approval to begin mining - Rosemont and Resolution.

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