Bisbee daily review., 1908-11-29
OF THE
YEAR Time OF
HIGHER PRICE
Walker Points Out That Even
In Flush Periods Much Cop
per Is Bought AT the End
of Year.
(By G. L. Walker.l

-
The copper market is dull again and
the prices a fraction lower. Lake is
IA IL to IA "a cents. and electrolytic
Producers, so far as can be- learned,
have sold all the copper they care 70,
and few, il any of them, are willing
to make new contracts at lower prices
than II 5-S to IA rs cents.4 TIE in
activity of, consumers is precisely
what should have been expected, as
1t is contrary 10 custom for them to
buy copper in the closing months 81
the year. The next important move
will probably be witnessed after the
first of January. and If general bust
mes conditions continue favorable Tot
price of copptr should then go above
10 cents.
Foreign consumers were heavy buy
ers on the recent advance and is
proved by the fact that exports are
holding up to about 10000 tons month
ly. The domestic consumption demand
is increasing steadily, and it is quite
probable that it will be back to high
figures again before the middle Oh
next year. The outlook for the metal
market is improving all the time.
Sometime ago 1 explained that
Turkish war would greatly stimulate
the copper market. This now finds
confirmation in the report of the pur-
chase Of 100000 pounds Of copper
/ By the Turkish government to be us
| ed in the manufacture of ammunition
AT the time of writing this the
stock market shows a decided restc-
| tionary tendency, and it seems not
improbable that prices may run off a
few points all around. The public has
been extremely skeptical on tle ad-
vance, and has sold as many or more
stocks than it has purchased A lew
bull traders have been buying too free
lly, and are oyer-extended. Even
slight decline will force them to sell
| their stocks, and this will put the
market in a stronger and safer posi-
ton. Thousands of traders and IN
vestors have been waiting for a reac?
ton. They will buy now, and unless
there are unforeseen and unexpected
! developments the average range ui
prices will be considerably higher be-
tween now and the end of January
Geperal bushes conditions are In
proving; copper is in better demand
and higher; all the mining companies
are enjoying increased earnings, and
coppers are, as rule worth more than
they are selling for. The fact that
these stocks have had big advances
since the panic of year ago, does
not necessarily mean that they are
too high now. There are a great
many of the eoppers that should adj
vance from % to so per cent within
six months or a year.
The theory entertained by many
| that there is too much copper, or 60
| ing to be too much copper produced,
| is wrong. AS a matter of fact there
| is a scarcity of copper for three to
| five years, and then surplus from
three to five months. Notwithstanding
the rapid increase in production the
| worlds growing consumptive demand
/ The only time there s too much cop
per is when all the mines are tyIing to
produce their, full capacity, while
some of the leading manufacturing
countries are suffering from business
lpanics and trade depressions. For
illustration, it was commonly believed
a year ago that there was a tremen-
dous surplus of copper in existence;
and though this country has barely be-
gun to emerge from the panic condi-
tons, all the surplus mas been exhaus-
ted already. and consumers are oblig-
ed to bid up prices to supply their re
| quirements.
/ Two vars ago there was a copper
( famine which sent up the price to &c
cents per pound-to more than dou-
BILE the cost of production. There is
no reason to doubt that this condition
of things may be repeated. Holders
of good copper stocks should inform
! themselves on this subject, and should
rest content that there win be mar
ket, at prices which will yield splen-
did profits. for all the copper the mines
can produce. "a
On the current market reaction
! the stocks of all the good producing
mines. and also the best of the medi-
um priced speculative coppers. should
be bought and held until the first Of
! January.