Editor's Note:

While some of you may know Ian Cooper from past options trading services, his 4,500% cumulative gains of 2007, and gains such as these...

• Fremont General September 2007 12.50 puts - 291% in 16 days
• Lennar January 2008 25 puts - 279% in 40 days
• Pulte January 2008 15 puts - 224% in 40 days
• New Century January 2008 25 puts - 214% in 16 days
• Centex January 2008 25 puts - 207% in 40 days
• Countrywide January 2008 27.50 puts - 203% in 69 days
• Thornburg October 20 2007 puts - 188% in 6 days
• MGIC Investments December 35 puts - 175% in 80 days
• Capital One January 2008 65 puts - 160% in 59 days
• Accredited Home September 2007 7.50 puts - 141% in 4 days
• Hovnanian November 2007 17.50 puts - 136% in 13 days
• Radian Group August 2007 60 puts - 122% in 19 days
• Standard Pacific September 2007 15 puts - 111% in 2 days
• Autonation January 2008 20 puts - 105% in 49 days
• New Century January 2008 25 puts - 89% in 1 day

...he's decided to launch a new options service, Options Trading Pit, which will look to profit from the market's demise and well as its upside.

In fact, he's been beta testing new strategies in the Options Pit blog, sitting with gains like these:

• Expedia Inc. October 22.50 put: 189% in 31 trading days
• Coca Cola Enterprises November 20 put: 271% in 31 trading days
• Masco Corporation October 20 put: 92% in 27 trading days
• Lehman Brothers Holdings October 20 put: 313% in 27 trading days
• UBS AG September 22.50 put: 165% in 21 trading days
• Walt Disney Company October 27.50 put: 10% in 2 trading days

Are gains like these easily attainable? You bet... especially in today's bearish environment.

Options Trading Pit launches shortly. Stay tuned.

Now, for today's Gold World...

Investing in Copper: What to Buy as Copper Price is Forecast to Spike

It was September 2007 when Citigroup analysts Alan Heap and Alex Tonks called for the spikes in coal and iron ore prices "because of demand from China and congestion at ports in Australia and South Africa."

And they were spot on.

So when the two analysts upgraded outlooks for coal and copper, I wasn't going to argue.

The two analysts just increased their price forecast for copper from $3.50 to $5 a pound for 2008, from $3 to $5.50 a pound by 2010, and raised their long term price forecast from $1.45 to $1.60 a pound, asserting that the copper market will "remain very tight until 2011" and on a "looming global power crunch."

Again, who am I to argue? They nailed the coal spike that Pure Energy Trader and SC Trading Pit readers benefited from.

Their analysis further noted that, "lower than expected supply growth will continue as a key factor contributing to tight markets and high prices. Disappointing supply growth has been mainly at existing operations (rather than new projects etc). With negative surprise likely to continue, mine production is forecast to be 900kt less than capability in 2009."

Expected 15% per Year Demand from China

They also forecast 15% annual copper demand from China, as the country continues building out infrastructure, such as:

• The rail network, which is expected to double over the next five years;
• Expressways, which are expected to increase 75%;
• Rural roads, which are expected to increase 66% by 2010;
• Airports, which are expected to grow by 70% by 2010;
• And seaports, which are expected to grow another 280%, according to MineWeb.com.

And that's on top of supply issues in Chile and Central America, water issues in China and Latin America, and costlier fuel and freight cost.

Why Southern Copper (PCU) is a Buy

Fortunately, equity exposure to copper is inexpensive. Southern Copper (PCU), post-split, trades at only $33. With more than 49 million tons of copper, PCU has more copper in its reserves than any other publicly traded company, including Freeport-McMoRan (FCX).

Even nicer, Southern Copper offers a dividend yield of about 6%, a hefty dividend as compared to peers like FCX, which pays about 3.6%, and Rio Tinto, which pays about 2.3%.

In our current economic meltdown, it's best to diversify with stocks that can bring in consistent money to help offset hyper-priced food and energy bills. With the expectation of higher copper cost, plus dividend payouts, we expect further upside in stocks like PCU.

The eventual goal of every investor is to go from supporting a portfolio to having a portfolio that supports the investor. That's part of the reason we love dividend stocks. They produce a steady stream of income despite the direction of the broader market.

Good Investing,

Ian L. Cooper
http://www.goldworld.com

—————————————

In case you missed our other investment opportunity highlights, here's what we covered in Wealth Daily, Gold World, Energy and Capital, and your free blogs for the week of July 7, 2008.

IndyMac, a $0 Stock?: The Nail in the Coffin...
In my last position at a competing company, I recommended a buy on IndyMac January 2009 20 puts. And I wasn't the only one that saw the coming IndyMac disaster.

Lehman Breaks $20... Hands Us 143%: We nailed it... Plus, What to Watch for...
On June 3, 2008, Lehman had just broken $30 support before catching a wave of buying. But you'd have to be blind not to see that Lehman was in real trouble. It's why we recommended buying the October 25 put (LYHVE) right here in your free options blog.

Gold Moves Higher on Iranian Rocket Tests: 'Can Hit Isreal'
Gold regained ground on Wednesday as speculators resurfaced on news that Iran had test-fired nine long- and medium-range missiles, lifting the metal's safe-haven appeal in times of uncertainty.

Progress Or Complacency?: How The G8 Screwed Us Again On Climate Change
So the G8's global warming discussions are officially over. What did they decide? Well, they made a statement that calls for cutting global greenhouse emissions in half by 2050.

Investing in Solar Installers: The Other Side of Solar
It's fair to say that, so far, solar installers have been the red-headed stepchild of the renewable energy investment world. Their counterparts, module manufacturers and silicon suppliers, have been in a noticeably different boat. And rightly so.

Peak Oil Confusion - A Game Whose Time Is Up: Taking IBD to Task
Confusion breeds apathy, and that's not something we can afford anymore. I believe that the impending energy crisis is too urgent to allow misinformation about peak oil to go unanswered. So I am attempting to set the record straight.

Haynesville Shale: Two Stocks Rushing for Haynesville Shale Gas
Another week, another record. Hopefully by now you've gotten used to seeing record crude prices. As usual, we started to see a sell off after nearly reaching $145.85 a barrel last Thursday. This morning, crude dipped over six dollars a barrel before bouncing back over $141 per barrel this afternoon.

Investing in BBVA: Profits Across the Pond
MADRID, SPAIN: You can't blame Spaniards for playing to win. They're on a roll, with a European soccer championship and Wimbledon title in just the past few weeks. Now Spanish players are surging into games of chance, and their top opponent is the slowing economy.

ETF Options Trading: Make Another 58% as the World Goes Mad
Behind the unemployment stats, layoffs are surging, as corporate profits sink. According to the Wall Street Journal, UK homebuilders like Barratt Developments and Taylor Wimpey announced that, together, they'd cut 2,000 jobs.

Insiders Buy at 2-Year Lows
What's interesting is that the last time insiders bought, the stock ran from about $21 to more than $24 between March and April 2008. Hoping the stock will do the same off recent lows, we're recommending a buy. Double bottom support doesn't hurt either.