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Copper Contango Experiment: Update

|Includes: iPath Pure Beta Copper ETN (CUPM)

As predicted two months ago, the copper price has made a huge move upwards to $3.75/lb (Chart 1). Investors are worrying though, as the U.S. dollar is now strengthening again while stock prices decline. But I assure you that as long as the contango in copper doesn't fall down, the copper price will keep increasing. I will bet my copper contango theory on it. So don't count out the rise in stock prices just yet.

Chart 1: Copper Price

As a matter of fact, the copper contango widened this week, again with a rising copper price. That means we are still awaiting the massive spike upwards in copper.

Chart 2: Copper Contango Vs. Copper Price