This Stock is up 200%, but Chart Points to More Gains
When it comes to commodities, they are going through a boom period right now, at a GDS of 20% whereby there is room for further increase. Gold, silver, and copper have risen by 6.12% and incredible 11% this year. The mining company giant Freeport- McMoran Inc saw an increase in stocks of 22% based on the performance of the main commodities in the market. The eight-week high in a row is an event not seen before in the commodities stock market.
The performance of gold is at 7%, while for aluminum it is slightly higher with 9%. A third place takes copper with an increase of 10% which is the best week for this commodity (Feb 6- Feb 10), whereby silver and platinum are at astonishing 12%.
Copper is especially performing well, given that it keeps its high every Monday for the past 20 months thanks to the two big mine closures which drove up the supply demand.
Once the downtrend was broken, there was no going back for Freeport-McMoran Inc, and only in the last year, it drove up by 200%.Observing the chart for row commodities or the CRB index it can be seen that a major drop was followed by incredible recovery, and the Freeport giant seems to follow the exact same pattern. Still, Freeport is not yet quite there yet, but it is expected to reach the exact same recovery point as the CRB index. Maybe it will not go up as high as the row commodities stocks, but the odds are great that they will. There was a 20% correction though in the five-year period chart.
Copper as The Best Performing Commodity of 2017
The rise of copper stocks is especially surprising because the commodity was performing very bad from 2014 to 2016. Only by the end of 2016, copper started to increasingly rise in value on the stock market, giving a better outlook for other commodities as well.
Copper value increased due to increased exports from China which imported 50% of the overall copper exports, as well as Trump’s infrastructure plans suggesting increased demand for copper.
Goldman and Sach also give positive statements on copper demand and the stocks and predict a bullish trend for copper for at least several more months. They also commented that China’s demand would keep the market flourishing for some time. A commodities analyst even predicts a bigger demand for this commodity which will surpass production capacities and might cause a deficit by only 2019.