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Copper prices soar amid supply concerns

Analysts say that the price of copper could continue to grow and grow after it reached record levels of $7,000 a ton today.

Disruptions to supply and the promise of continued strong demand from China caused the commodity to rise in price on world markets, with other metals following suit, including zinc, nickel and silver, which bounced back from a drop in price yesterday.

Threats of strikes at copper mines in Chile and labor disputes in Mexico raised concerns over availability, pushing up prices in a market where there has already been enthusiasm from investors.

Commodities are currently providing investors with better gains than either stocks or bonds, with the expanding world economy attracting fund managers, who are investing heavily in them.

Speaking to Reuters, London Metal Exchange traders said that they saw no reason why the price of copper won't continue to rise in the following months.

"Copper will continue to go higher. We could see $200-300 on the downside, but the trend is up and I can't see where any real weakness will come from," said one trader.