Key points:
- The article talks about two metals: copper and gold. They are important because they are used in many things and their prices change a lot.
- Copper has been going up very fast recently, which is unusual and can mean it will go down soon. It is also overbought, which means people are buying too much of it and the price might drop.
- Gold has not been doing as well as copper lately, but some companies that mine gold are still doing good business. Some investors think gold is a safer bet than other things in the market right now.
Summary:
The article says that copper and gold are two metals that people care about because they use them for many things and their prices go up and down a lot. Copper has been going up very fast, which might mean it will go down soon. Gold is not doing as well as copper right now, but some companies that get gold from the ground are still making money and some people think gold is a better choice than other things in the market today.
Read from source...
- The author seems to have a strong personal bias towards copper and gold as his favorite metals, which may affect his judgment of their performance and value. He also uses informal language like "pinch myself" and "bug in search of a windshield", which detracts from the credibility of his analysis.
- The author does not provide any concrete evidence or data to support his claims that copper is overbought and approaching a reversal, other than mentioning an RSI at 75 and a MACD buy signal. He also fails to acknowledge the possible factors driving the increase in demand for copper and gold amid market chaos, such as geopolitical tensions, supply chain disruptions, or economic recovery.
- The author contrasts his views with those of Benzinga Research, without providing any details on their methodology, sources, or conclusions. This creates a false sense of controversy and disagreement, rather than offering a balanced and objective perspective on the topic.
1. American Eagle Gold (OTC: AMEGF): BUY, high risk, high reward - this is a penny stock that has been surging along with the copper price, but lacks financial transparency and has a history of dilution. However, if copper continues to soar, it could see significant gains and attract more attention from institutional investors.
2. Cameco (NYSE: CCJ): BUY, moderate risk, moderate reward - this is a major producer of uranium and also has some exposure to copper through its stake in the Quatsino Copper Project. It has a solid balance sheet and dividend history, but faces headwinds from low uranium prices and regulatory challenges. However, it could benefit from higher demand for both metals as the world recovers from the pandemic and moves toward green energy sources.
3. Physical Gold ETFs (such as GLD or IAU): BUY, moderate risk, moderate reward - these are exchange-traded funds that track the price of gold and offer a convenient way to gain exposure to the metal without buying individual stocks or bars. They have low fees and liquidity, but also face competition from other ETFs and digital assets. However, they could appreciate in value as investors seek safe-haven assets amid market uncertainty and inflation risks.