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Copper Plunge Continues Despite Chinese Stimulus
Since China unleashed its latest (and greatest since 2008) RRR cut, stock prices have surged amid the liquidity hype. However, perhaps more indicative of the underlying reality of just what good an RRR cut will do to a debt-saturated economy full of weak credits thanks to tumbling asset prices, copper prices have now plunged over 6% in the last 2 days...
But still BTFATH in Chinese stocks...
Charts: Bloomberg
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Copper will be free soon, only fiat paper has any value!
> "only fiat paper has any value" --> Hey, don't forget about digital signals showing ownership of a four letter symbol "AAPL". Surely those will still have value in the coming era, no? ;)
apples sure will have a value, but potatoes gives you a better weight/energy ratio.
Better Vodka too...
Copper falling will lead to the coppers rising...
They are doing this on purpose. They need to keep the copper pipes in houses in the decaying cities of Amerika's former middle class to make room for all the Californians.
pods
nobody uses copper in residential anymore
Copper stills should be a bargain now.
Funny, I made the same discovery: All copper that I release, falls at the same speed as the WTC towers -- freefall.
Seriously... given that a Penny costs more to make than it's worth, Pennies become a target for hoarding -- as a Store of Value. So, are TPTB dropping the price of Cu, to bring the price of Pennies closer to their metal value?
Of course if we look at the composition of modern Pennies, we learn that there's precious little Cu in them. / They'll make them out of plastic pretty soon, I'm sure. /sarc
The markets can stay irrational much longer than anyone can stay solvent. If you think copper is cheap now, buy a warehouse full with your fiat and store it until the fiat collapses. Do you have enough funds set aside for the purchase and storage expenses?
I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.globe-report.com
Damned tangible assets. They'll be the death of us all. You mark my words.
Seems like the emperor needs to put some tangible clothes back on again at some point.
Copper sure has made a great shorting opportunity this spring though.
Yea I've been seeing a few things that didn't buy into it.... Quite a few as I've been immediately after ticking them up in my head.... But can't remember them off my head at moment lots of things didn't buy all into it.
The macros look so weak, this can't be right.
i'm holding off on copper till they pay me to take it
What is the price of Chinese Stimulus these days?
If this keeps up, then all my jars of pre-1982 pennies will go back to being worth -- a penny!
Instead of China stockpiling copper or building more ghost cities with it, can't we just use the thousands of ships that are not being used because trade is collapsing, load the ore onto them and float them out to the Mariannas Trench --- and heave the copper ore into the ocean.
We could have daily reports on how much copper was heaved into the ocean and the markets could respond as if this were a growth indicator.
I can see Joe Kernen and Liesman high fiving each other 'Joe, the number of ships dumping copper into the Trench doubled last month --- isn't that great news!' ---- 'Oh ya Stevey boy green shoots are FINALLY here!!!'
Then they trot out the Toss Pot (aka Jack Welch) to tell us how all is well followed by the gimp (otherwise known as Andrew Ross Sorkin) who reaches under the table to massage Jack's inflamed protate gland eliciting barely audible whinnies of joy.
When you throw all logic out the window there is a simple solution for everything
negative rates on copper next.
fuck this, im done
Where is the GOLD POPS! part of the headline? You guys are slipping.
time to play "spot the lies and contradictions...."
"Silver stockpiles in China surged this year as the country’s slowing economic growth weakened demand for the precious metal (CONTRADICTION), according to a state researcher.
Inventory monitored by the Shanghai Futures Exchange almost tripled to 341.5 metric tons April 9, the highest in a year, from 122.8 tons in the final week of 2014 (CONTRADICTION of weak demand), according to weekly bourse data compiled by Bloomberg. Stockpiles on the Shanghai Gold Exchange also more than doubled this year to 263.97 tons on April 3, exchange data show.
Chinese silver producers delivered the metal to exchange warehouses amid falling physical demand (CONTRADICTION of weak demand), said Jin Xiangyun, a senior precious metals analyst at Beijing Antaike Information Development Co. China’s economy expanded at the weakest pace since 2009 last quarter, indicating a deepening slowdown. The global benchmark price has fallen 17 percent in the past year.
“Silverware and jewelry makers said they wouldn’t produce much because of weak demand,” Jin said in a telephone interview April 22, citing their recent survey of producers. “Fabricators usually purchase large amounts of refined silver after Chinese New Year holidays. That didn’t happen for this year.” The break was from April 18-24 this year.
China’s gross domestic product rose 7 percent in the first quarter, while industrial production was weaker than estimated in a Bloomberg survey. About 50 percent of silver is used in industry to make everything from solar panels to batteries (LIE: 1 billion ounces produced annually of which 800million goes to industry - the remainder for investment demand), compared with 10 percent for gold, data from the Silver Institute and the World Gold Council show.
Silver for immediate delivery fell 0.2 percent to $16.2694 an ounce by 10:31 a.m. Shanghai time. Futures for June delivery on the SHFE lost 0.8 percent to 3,524 yuan a kilogram, down 13 percent in the past 12 months.
SHFE stockpiles fell to a two-year low in September as exporters stepped up overseas shipments to qualify for a tax rebate, draining inventory.(CONTRADICTION of wanning demand LIE)
http://www.bloomberg.com/news/articles/2015-04-17/china-silver-stockpile...
Surges in warehouse inventory holdings sure seem like a classic indicator of slowing demand to me.
depends on whose warehouse and on whose behave...
and im sure the producers will continue to mine it, process it, refine and deliver it to the SHFE at prices below the cost of production just so it can sit there and look pretty....
u r of course free to believe what u wish however....
Dr. Copper I presume...
Oh get a grip, it made an excursion up from February lows up towards the declining 200ma, now it's cancelled its upwards momentum before getting to the 200ma, but copper will probably go sideways for a month or three now until the 200ma comes down to meet it, and then we shall see. Sideways is the (optimistic) theme for the year. Yellen's legacy may be as The Sidewinder.
can you eat it?
the spiked hair guy that talks like a Westchester Communiity College grad on CNBS said that the price of copper dropping was, like, a joke ... meaningless, etc. i would trust him over decades of correlation... most def
and since when did a liquidity pump have anything to do base metal prices?
This is going to bury the giant underground copper mine under development just 40 miles north of my town, out in the north woods. Planned as the world's largest underground copper mine, it is only just beginning to develop. This is likley to spook investors and make then run for the exits. Leaving only the junk bond market to finance development. All those 500 promised jobs are headed for the crapper!
Paging Dr. Copper. Paging Dr. Copper. Deflation is on line 2.