These 5 Stocks Could Fall On Copper Surplus [View article]
Copper demand is dropping and copper producers should curb production unless they think they can make enough on the paltry ounces they get of gold and silver in the mining (they can't). The copper unwind will take years. So there is nothing good to see or look at here.
I agree that copper is more a indicator of China than the US for a multitude of reasons. China uses copper to make products it exports, but more importantly its used in construction where it reflects the slowing real estate build-out there.
I don't buy the hard landing argument but I do believe that growth in China will decelerate unless spurred by domestic growth. Import driven economies can only last so long with growth unless the countries they supply grow significantly as well.
Copper Sell-Off Potentially Good News For Silver [View article]
Sadly Kevin McElroy is correct that silver demand is constrained and this may mean less silver mined. However, a large portion of silver commodity price is based on industrial demand which follows copper rightly or wrongly. In reality silver demand will only rise even if copper demand falls flat, however, it may take a long time for the market to realize it and properly value silver. Silver will need to be depleted enough so that those selling paper silver will be hesitant to sell even more unbacked silver commodity futures.
In the meantime the best you can do is to lobby Congress to write a bill blocking anyone from loaning out US silver and gold reserves to those who wish to borrow it to speculate with it. By and large the majority of them are shorts.
Are Copper And Silver Prices Predicting A Global Recession? [View article]
There are a lot of indicators pointing to weaker demand and renewed recessionary pressures. I agree copper alone is not a sole indicator but taken with continued unemployment troubles, weaker demand, drops in most all commodities, ECRI numbers, and other indicators I'd say a global recession is a very high percentage if not assured since we might have entered it in September.
Debt Ceiling ETFs: A Different 'Gang of Six' [View article]
The weak hands that dumped commodities during the recent selloff will be very sad unless the 1% chance the US defaults on its debts occurs. The issue is, even if Congress decides not to raise the ceiling the President will demand payment to be made anyways and it will end up in the Supreme Court. I doubt if Congress wants to have this shadow power yanked from them as well as be blamed for a weak economy and A Constitutional "crisis".
Can Copper Prices Really Be a Market or GDP Predictor? [View article]
It's useless to argue statistics. There is correlation, but regarding future predictive powers of copper they are not always tied together. Certainly the actions of dollar depreciation affect copper regardless of its effects on the stock market, although this tends to be highly correlated to both copper and the market recently.
Where they diverge is when the housing market doesn't recover but the economy recovers or vice versa. In general transports are probably a better forward indicator as well as freight statistics.
Today in Commodities: Sideways Trade [View article]
Commodities may trade sideways but a lot of the full value of high commodity prices are not in the miners and producers yet. All they need to do is hold their prices to generate incredible returns.
Today in Commodities: China, The 800-Pound Gorilla [View article]
I'm surprised the author didn't talk about copper, iron, steel, and rare earth minerals because that's where China is the real gorilla. The gold gorilla is India more than any other nation.
Global Macro Notes: Winners and Losers in the Fed's Inflation Game [View article]
Might I add the Fed's inflation game is a devalue all American's assets game as well. The sad fact is the rest of the world gains relative to the US. That can't be a good thing.
The Curious Case of Copper and Its Compatriots [View article]
It is not just the government printing money but the Federal Reserve making money with QE. In the end it will be QE that sends interest rates to the moon and beyond. The Federal Reserve needs to be reigned in. Constitutionally, what the Federal Reserve is doing is questionable because rightfully the founding fathers made it clear that only Congress can create money. Don't you think they make enough already in the form of deficit spending? Seriously, the last thing American needs is the bloated liabilities the Federal Reserve takes when they print even more funny money buying up securities from their most favorite financial institutions and then refuse to disclose what they did and to whom they did it with.
The Correlation Between Copper and the S&P [View article]
The stronger more cogent argument is between the US dollar and the S&P. In general when the dollar strengthens it is bad for the stock market, copper prices, and commodities in general. Given that, China's efforts to reign in their real estate bubble may amplify coppers downwards trajectory which may or may not spill over to the US market.
These 5 Stocks Could Fall On Copper Surplus [View article]
Copper Confirming The Correction? [View article]
A Chinese Hard Landing? [View article]
Copper Sell-Off Potentially Good News For Silver [View article]
In the meantime the best you can do is to lobby Congress to write a bill blocking anyone from loaning out US silver and gold reserves to those who wish to borrow it to speculate with it. By and large the majority of them are shorts.
Are Copper And Silver Prices Predicting A Global Recession? [View article]
Debt Ceiling ETFs: A Different 'Gang of Six' [View article]
Can Copper Prices Really Be a Market or GDP Predictor? [View article]
Where they diverge is when the housing market doesn't recover but the economy recovers or vice versa. In general transports are probably a better forward indicator as well as freight statistics.
Today in Commodities: Sideways Trade [View article]
Today in Commodities: China, The 800-Pound Gorilla [View article]
Global Macro Notes: Winners and Losers in the Fed's Inflation Game [View article]
The Curious Case of Copper and Its Compatriots [View article]
The Correlation Between Copper and the S&P [View article]