iPath DJ AIG Copper TR Sub-Idx (JJC)

TSIF (98.76) Submitted: 6/4/2009 12:00:26 PM : Start Price: $31.21 JJC Score: +16.84

Alex1963 had this added as pickable to CAPs and I can only echo him and applaud.

1. Copper is used in many things. Even without a stimulus package it was being undervalued. Stimulus packages include a great deal of electical upgrades. Hurricanes, ice storms, and normal wear require more copper lines. Not long ago people were stripping abandoned houses and the copper from fire trucks due to it's pricing.
2. When commodity prices become depressed, miners cut production. It is one of the few "equities" that becomes self regulating. If Mining/processing costs are above market price, it's more economical to leave it in the ground or stockpile it. Supply goes down, price goes up. Toss in an increase of demand and you have a boom.
3. There is currently LESS than a 5 day supply of COPPER in the world. (similar for Zinc, Aluminum has about 25 days). Somebody will need copper and they will pay for it.