Freeport McMoran and Metals Demand
Freeport McMoran (NYSE:FCX) is strongly positioned for whatever may come in the precious metals sector, and being among the largest producers of key metals lie copper, molybdenum and gold, they can move up in a number of sectors, and that breakout could possibly be sooner rather than later.
Before concerns are raised about the poor condition of the economy in America and numerous other countries and regions, this play isn't going to come because of surging demand based on economic growth, but surging demand to replenish supplies, as companies have held back on making significant investments toward that end.
This is why recent data released on fourth quarter growth was meaningless from the point of view of growth, as it has largely been proven to have been simple replenishment, and that's the case now as well.
This of course shouldn't be taken as a negative, as whether it's replenishment or growth, there should be growing demand for precious metals going forward, and that should be good news for Freeport McMoran and its investors.
Freeport McMoran and Metals Demand
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