Replies to post #34699 on Value Microcaps Junior Miners

[Bobwins]

certainly commodities have been in a long term bear market and there are definite signs that commodities are breaking out to the upside.

However, copper is a special case tied closely to economic activity. And the center of that activity is China. If there is a global slowdown/recession, China's appetite for copper is not going up and so the likelihood of a price surge are not great. The recent outbreak of this new virus is going to smack the Chinese economy hard in the short term. If they can get control of it quickly, the harm may be modest but I think it will still slow parts of their economy noticeably.

Psychologically, it will cause caution and hesitation by decision makers.

I think the copper bull call is highly dependent on a healthy Chinese economy and I think that it's premature to make that call.

[Bobwins]

huesos, this article was on the kitco site. Lobo is not my favorite newsletter writer but this article does speak to your question with some actual facts and charts.

https://www.kitco.com/commentaries/2020-01-15/Red-metal-rising.html