Southern Copper (SCCO_): "I don't think that copper is that good and I don't want to own this stock."
'Mad Money' Lightning Round: Stay Away From Southern Copper
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Copper goes up and down, SCCO TENDS to go in synch but not 100% by any means. I think we may have a very very long wait before we see copper at over $4/lb. In fact the rate of increase in demand may have peaked and demand could shrink or at best stabilize. I certainly hope not. The quote below from Wikipedia is very worrisome for copper bulls. Buying stock in Corning is one way to hedge but I don't currently have any. GLL
"Because of its advantages over electrical transmission, optical fibers have largely replaced copper wire communications in core networks in the developed world."
Copper is consumed by electrical machines and equipment; every piece having a motor and/or power supply must use copper wire to receive power and good part of the equipment itself is made of copper. Fiber optic is for different applications (telecoms, internet, i.e. wire communications).
Copper demand will grow as long as more people populate this planet using more cars, refrigerators, lighting bulbs, air conditioners and so on, or shortly speaking using more electricity.