Copper Cost Inflation

Aug. 02, 2013 12:31 AM ETFCX, SCCO, COPX, LUNCF, HBM
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Investor, Entrepreneur, Financial Historian, Austrian School Economist, Investment Analyst, and Contrarian. Co-founded the investor education, financial education and consulting company, Wall St for Main St, LLC in 2009. I've taught beginners how to invest and also consulted for high net worth individuals worth 6-8 figures helping teach them how markets are changing. Became interested in the stock market and investing after the 2008 crash. Woke up then started taking back control of my financial freedom. I've read over 100 books on investing, entrepreneurship, etc and also increased my financial education through thousands of articles, thousands of podcasts and over 100 documentaries. Over 10,000 hours of market research. I more than tripled my investing capital while I learned how to invest and I've made 10 times my money on some stocks in my young career. Double major in history and political science from Virginia Tech. Law school and MBA program drop out. Learned investing after college without having to unlearn Keynesian Economics and other bad academic theories that don't work in the real world. I've also interviewed and argued with hundreds of big name investors like Jim Rogers, Dr. Marc Faber, Rick Rule, Ross Beaty, Doug Casey, Vitaliy Katsenelson, David McAlvany, Todd Harrison, etc on Wall St for Main St podcasts. I've worked in the past as an IAR/RIA (fancy name for a stock broker) at a very large retail firm and as a full time investment analyst at a well known paid newsletter company for retail investors for my day job.

Very interesting study released last week by SNL Metals Economics Group.

The report looked at costs in the copper industry over the last few decades. And found some startling numbers.

The most interesting figures had to do with costs. The group estimates that over the last 20 years, the average capital cost for copper production capacity has risen on average by 15% per year, with "much of the increase evident since 2008."

That's an incredible amount of cost inflation for producers to keep up with. And the problems aren't just with capital costs.

The group estimates that the average cost to find and produce a pound of copper has risen from $0.76 in 2003 to $3.30 in 2012.


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