Copper, “The Metal Of The Future”

By Frank Holmes – Re-Blogged From http://www.Gold-Eagle.com

As many of you know, copper is often seen as an indicator of economic health, historically falling when overall manufacturing and construction is in contraction mode, rising in times of expansion.

That appears to be the case today. Currently trading above $3 a pound, “Doctor Copper” is up close to 28 percent year-to-date and far outperforming its five-year average from 2012 to 2016.

Continue reading

Advertisements

Gold Worm On The Yuan Hook

By Hugo Salinas Price – Re-Blogged From http://www.Gold-Eagle.com

Once again, I turn over in my mind the Chinese plan regarding their imported oil, which consists in convincing their oil suppliers to accept yuan in payment (and thus re-directing their sales outside the orbit of the US dollar) with an additional sweetener in case the oil exporters do not wish to hold assets denominated in yuan: the sweetener consists in offering to exchange the yuan received by the oil exporters, for gold purchased on the world markets – and not out of Chinese reserves.

Again, I mention that for the first time in 46 years – ever since that fateful date, August 15th, 1971, when Nixon took the US “off gold” – gold is once again mentioned as part of a commercial deal – and one of great importance.

Continue reading

Oil Paradigm Shift Dead Ahead

By Spock – Re-Blogged From http://www.Silver-Phoenix500.com

Global Macro Thesis: Copper, Copper, Copper

The Chinese are holding their next national congress assembly from 18th October. This is a major event where macro policy for China is agreed and implemented. On the agenda will be the electrification of national road transport, with a plan to be all electric by 2050. This will achieve two objectives: Reduce pollution in the major cities and to be the global leader in the electric vehicle (EV) technology, and associated technologies. The Chinese are also building the infrastructure around the concept, including a huge electric grid upgrade across the country over the next 10 years, to cope with the additional load.

Continue reading

Copper Hits Fresh 2-Year High on Possible China Scrap Ban

By Anjli Raval, David Sheppard, & Tom Hancock – Re-Blogged From Financial Times

The Red metal is a key source of income for some of the world’s biggest mining companies. Copper jumped to its highest level in two years on reports that China could ban imports of scrap metal by the end of next year — a move that would probably boost demand for refined metals in the world’s top importer.

Copper for delivery in three months on the London Metal Exchange rose as high as $6,400 a tonne on Wednesday, a level not seen since May 2015, having risen by about 5 per cent over the past two sessions. In afternoon trading, it moderated its gains to $6,316 a tonne.

Continue reading

Proof That This Economic Recovery Narrative Is False

By Sol Palha – Re-Blogged From http://www.Silver-Phoenix500.com

The financial media has provided reams of data trying to lay out the case that this economic recovery is real. Many of the statistics provided do indeed support the theme that the outlook is improving.  One must, however, keep these two facts in mind when looking at the data:

  • The Fed poured huge amounts of money into this market.  Minus the money, this so-called economic recovery would have never come to pass
  • Due to the low-interest rate environment, corporation borrowed money on the cheap and poured billions into share buybacks since the crash of 2009.

Hence, while some of these statistics paint a rosy picture, the outlook is far from rosy as two key leading economic indicators have failed to confirm this recovery from the onset.

The Baltic Dry index is trading 92% below its all-time high. Now imagine the Dow was in the same position and the press instead of calling it a crash, made the assertion that we were in the midst of a raging bull market. You would think they were insane.  Well, the same analogy applies today; this index clearly indicates that there is no recovery on a global basis and that hot money is creating the illusion of one. Remove this excess cash from the system, and the economy together with the stock market will collapse.

Continue reading

Volatility of the Copper Markets Combined with the ‘Trump’ Effect

By Stuart Edwards – Re-Blogged From http://www.Gold-Eagle.com

Much like other commodities, traders have always devoted a certain level of attention towards copper. There are two key reasons for this observation. First, this red metal is highly indicative of industrial demand and therefore, the health of domestic economies. Secondly, political policy shifts and fiscal plans can have a knock-on effect in regards to its pricing. We have witnessed a great deal of volatility during the past few months and while the medium-term outlook remains positive, many are wondering if a support level will soon be reached. Let us take a look at the root causes of this volatility as well as what to expect in the coming months.

Continue reading

What the Death of the Penny Means for Our Money

By Stefan Gleason – Re-Blogged From Money Metals News Service

The dollar’s reign as the world reserve currency will come to an end some day. But before that happens, the penny will likely go into the dustbin of monetary history.

U.S. pennies have already been debased – going from 95% copper before 1982 to just 2.5% copper (and 97.5% zinc) since. Now there’s a push afoot in the Senate to junk the penny entirely.

All the sound and fury Republican leaders made about repealing Obamacare signified nothing. They aren’t eager to betray the healthcare lobby, insurance providers, and pharmaceutical companies who worked with Congress to write the law and who paid so handsomely into campaign funds. They would rather betray voters.
Supporters of eliminating the penny note that it no longer makes any economic sense to produce them.

Continue reading