Copper
Contributed Opinion

The PPI number came in hotter at 0.5% versus the expected 0.3%, and the core PPI was double the 0.2% consensus coming in at 0.4%.

Stocks have largely ignored the negative implications, but the 10-year and 30-year bond yields are rising as they definitely did not like the inflationary implication of spiraling wholesale prices.

This always gets passed down to retail or "consumer" prices, suggesting that the CPI number might also come in hot.

I will be watching Jerome Powell's speech this afternoon to detect any hint of a hawkish overtone, which would not be appreciated by the stockroaches.

The metals initially backed off but are now responding properly to the PPI, with gold and silver now up 0.37% and 0.54%, with the hero of the day being copper, up 1.50%.

The big news this morning is the filing by Sprott Asset Management of a preliminary prospectus for an IPO for a "Physical Copper Trust" in the same manner in which they filed a "Physical Uranium Trust" back in 2021 with U3O8 under US$30.

With copper supply already considered "tight" and mine production dropping, this could not have come at a better time for copper bulls like us.

If this trust has anywhere near the impact on copper that it did on U3O8, then copper prices could easily double, considering of course that U3O8 tripled after the Sprott Physical Trust got involved from 2021 until late 2023.

For the boys over at Sprott to come charging, in fact, LEAPING, onto the copper bandwagon is extremely positive for holders of Freeport-McMoRan Inc. (FCX:NYSE), Fitzroy Minerals Inc. (FTZ:TSX.V; FTZFF:OTCQB), American Eagle Gold Corp. (AE:TSXV), and Vortex Metals Inc. (VMSSF:OTCMKTS;VMS:TSX;DM8:FSE).

There is, of course, also Sprott Copper Miners ETF (COPP:NASDAQ) and Sprott Junior Copper Miners ETF (COPJ:NASDAQ).

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