The price of gold is approaching all-time highs above $ 1,900 an ounce.
Investors are pouring money into gold ETFs that, if ever traded for physical bullion, would absorb production from all of the world’s gold mines for more than a year.
The price of copper? It has barely budged from its 2020 opening levels. Bellwether metal is likely to be rejected by the mythical $ 3 per pound level (last averaged in 2014) for the foreseeable future.
As for copper ETFs, since you started reading this post more money flowed into GLD than total assets that the only two copper ETFs in the world have under management.
However, if during the depths of the covid-19 panic you kept your wits about you while everyone else was losing theirs, your returns are crushing golden errors.
Since copper ETFs are not really a viable option (not liquid at any temperature) and futures can be left in the hands of managed money, copper stocks have to do it for you.
And they sure did.
If you chose specialists Freeport (NYSE: FCX), Southern Copper (NYSE: SCCO) and First Quantum (TSE: FM) four months ago, you’re enjoying more than 60 returns.
FCX, which appears regularly on the most active trading charts, almost doubled since mid-March (no doubt enjoying an additional boost from its Papua gold business).
Heavy diversified Anglo American (OTCMKTS: NGLOY) and Vale (NYSE: VALE) outperformed no. 1 and 2 and even Prickly Glencore (OTCMKTS: GLNCY) matched the performance of the great gold.
Granted; it’s 2020 and this is hindsight. But over time, the gold rush and the covid-19 will break down.
Copper was trading at $ 2.88 per pound on Friday; the price would need to gain another 58% to reach its 2011 record (for gold, probably Monday).
That gives you a lot of time to play in the copper market.
For the bullion boys, the new party of all time is almost over.
