Further to the discussion around the price of copper going forward...

This almost a discussion for the off-topic board, but since I figure we own, what is to become, a copper mine, and the name of our company is copper fox, I can get away with it.

We've seen the price of copper take a kicking over the past couple of days based on a probe into China's lending practices.

http://www.theaustralian.com.au/business/latest/copper-price-posts-sharp-retreat/story-e6frg90f-1226943781957

In short, Chinese companies are borrowing money from banks based on copper stores they have sitting in a warehouse. It seems as though, they may be playing with their books, using the same collateral to take multiple loans - in effect, lying about the actual amount of copper they have. Really? The Chinese? Lying about copper stores? Say it ain't so...

This leads to speculation that they will no longer be able to use it as collateral, or be forced to sell their supply and flood the market, driving the price down. I think that mentality is complete poppycock. They're probably loading up more on cheap copper as we speak.

I think this news will serve to do the exact opposite. All it proves is that China has less copper than the world markets thought and that they can't be trusted to accurately report what they do have. The Chinese economy continues to grow quickly, as does Europe and they're going to need copper. The LME and COMEX stocks seem to be going down monthly and now sit lower than they've been in more than five years. I see a very near term surge in the price of copper, and interest in copper projects in general. This can be nothing but good news.