Michael Ballanger of GGM Advisory Inc. comments on Sprott Asset Management's filing of a preliminary prospectus for a “physical copper trust” IPO. He also shares some copper stocks that could benefit.
The PPI figure came in higher at 0.5% compared to the expected 0.3%, and the baseline PPI was double the consensus of 0.2% to 0.4%.
Stocks have largely shrugged off the negative implications, but 10- and 30-year bond yields are rising because they certainly don't like the inflationary implications of the wholesale price spiral.
This still trickles down to retail or 'consumer' prices, suggesting the CPI figure could also be of interest.
I will be monitoring Jerome Powell's speech this afternoon for any trace of hawkish overtones, which the cockroaches would not like.
Metals initially fell but are now reacting well to the PPI, with gold and silver up 0.37% and 0.54%, the hero of the day being copper, up 1, 50%.
The big news this morning is Sprott Asset Management's filing of a preliminary prospectus for an IPO for a “Physical Copper Trust” in the same way they filed a “Physical Uranium Trust” in 2021 with U3O8 at least of US$30.
With copper supply already considered “tight” and mining production declining, this couldn't have come at a better time for copper bulls like us.
If this trust has an impact on copper comparable to what it had on U3O8, then copper prices could easily double, knowing of course that U3O8 tripled after the involvement of the Sprott Physical Trust in 2021 at the end of 2023.
That the Sprott boys are coming to charge, in fact, JUMP, on the copper train is extremely positive for the holders of Freeport-McMoRan Inc. (FCX:NYSE), Fitzroy Minerals Inc. (FTZ:TSX.V; FTZFF:OTCQB), American Eagle Gold Corp.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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Important Disclosures:
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their households) own securities of American Eagle Gold Corp. and Vortex Metals Inc.
- Michael Ballanger: I, or members of my immediate household or family, hold titles of: All. My company has a financial relationship with Fitzroy Minerals. I determined which companies would be included in this article based on my research and understanding of the industry.
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Disclosures from Michael Ballanger
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