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Forget Oil, Base Metals Collapse 50% From 2011 Highs
Bloomberg's global commodities index is testing fresh 16 year lows but this is often excused on the basis that it includes crude oil weakness - which will mean-revert higher any day now. Perhaps the bigger, even louder warning signal is directly from the basest of base industrial metals... which are now down 50% from their 2011 "reflate the world" highs.
The index - based on copper, aluminum, zinc, nickel, lead, and tin - is not flashing 'recovery is coming' headlines...
But then again - when has that mattered for stocks...
Charts: Bloomberg
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So when is Glencore going down? Keep a close eye on those Fed Reverse Repo numbers?
Transitory. And BULLISH! BTFD!
and what year did both buzzsaw and his dealer sell their silver? go ahead, guess bitchez.
Why is everything still so damn expensive and still going up in price every month?
Oh yeah, in a decling sales environment public corporations increase prices and/or fail to reduce prices by passing along production savings in a desperate bid to increase earnings.
I do look forward to the after Christmas clearance sales this year. Might even be better than 2009.
Everyone is doing the same thing we all are - staving off insolvency. Home owners and banks won't sell homes to keep from locking in losses, manufacturers won't lower prices because they are sitting on millions in inventory, and shipping rates aren't being lowered with shipping companies holding onto hopes of "recovrry."
Everyone is doing the rational thing for themselves while fiat money exponentially implodes in a writhing heap of insanity.
Fuck "After Christmas Sales" - watch Craigslist. Soon there are going to be some real scores to be had.
(Daddy's shopping for a nice Southbend lathe and some water and diesel storage tanks for instance)
Seriously.
All i hear is "all metals are dropping in price" but all I see is aluminum and copper getting more and more expensive.
What goes down.................must go back up..............in a fiat world
Everything is Graphene from here out.
That's what I heard from the crack-head hooker too.
How much longer can the Masters of the Universe continue this booming economy charade? We'll find out soon enough as the commodities sector goes tits up and the BDI goes subterranean.
THEN the fucksticks are gonna raise rates? Hahahahahahaha!! Time to reap what ye hath sown.
How much longer can the Masters of the Universe continue this booming economy charade?
Indefinitely!!! If the Soviet Union could do it, so can they. That doesn't mean the charade is succeeding. But the charade itself won't stop.
i know this is a base metals post but here are two quotes from a running battle zh silverheads vs. buzzsaw99 in 2011:
these same type of dumb fuk echo chamber circle jerkers were all screaming "BOND CRASH!" right along with Bill Gross last spring. I make money, and I stand by my record. Yeah, I'm a troll, but I will enjoy watching this bunch of self assured smug bugs lose their shirts in the coming months when PMs go into the toilet.
these people seem to be all pm newbs. i held gold and silver at one time, sold it all. i wouldn't touch it now. silver and gold have already priced in QE3...
http://www.zerohedge.com/news/guest-post-silver-ready-pop-or-drop
suck it bitchez.
thanks for the link, love reading the old ZH comment threads...
Wed, 03/14/2012 - 16:10 | 2255612 trav7777''sigh...ok, it's clear that you people are too stupid to get this, so let me explain.
You have emotionally identified with your silver. I don't hate SILVER, I hate YOU. Are we clear now? You and your silver are not one and the same, ok? Stop getting attached to your fkin possessions.
I hate silverbugz because you are a herd of lemming muppets listening to idiots and con artists.''
http://www.zerohedge.com/news/day-history-gas-prices-have-never-been-higher
Buzzy, that's a serious ego you serve. Do not break your arm giving yourself a reach around. And oh btw...we're on your team bitch.
+1
i don't do that shit very often but am in a nasty mood this a.m.. in my defense i fought off dozens of assholes for years. they are mostly broke and gone so i guess it doesn't make much sense to gloat now.
Deflation isn't a word used to often by Zerohedge. Copper at 6 year lows? Gold and silver about to break new lows? Dollar higher? Grain prices lower.
Only thing going up in price is anything the government backs; college tuition, healthcare, - and here's a good one, groceries at your local store may still be higher? Why would that be when grain prices have fallen so much? Perhaps it's the record amount of people on SNAP (formerly known as food stamps)? In otherwords, government backed.
+1 good point about SNAP preventing deflation in groceries.
Real stuff is really cheap.................it's the dollars that are expensive............currently. What goes around comes around.
Wonder what the PBOC is going to do with the bajillion tons of base metals they're going to have to buy to prop up the price. Guess those empty cities will come in handy.
Q: what the PBOC is going to do ?
A: they do not need to do anything - they can simply stop selling and sit and wait on the resources they possess
The latest estimates by the Lisbon-based International Copper Study Group paint a very different picture from the previous forecast made in April. The market is now expected to be broadly in balance this year and to fall into a deficit of 130,000 tonnes in 2016. This compares with April’s forecasts of surpluses of 364,000 and 228,000 tonnes respectively. I believe both the 2015 and 2016 will be much more in deficit even with a modest price recovery.
Escondida is the only mine to produce more than a million tonnes per year. It is also low-cost, below $1 per pound. Operator BHP in May completed a $4.2 billion expansion and is spending another $3.4 billion on water facilities. Despite the billions being spent and low-cost structure, Escondida’s output will fall by more than 200,000 tonnes this year as record material mined is offset by a sharp decline in grades.
Freeport is expecting lower output in 2015 due to the El Nino weather effect. Now it looks as if this weather impact will be even worse.
Good thing I thought ZH was right and backed the truck up when Au was at 1500 and Ag was at 35.
I'm a fucking dumbass when it comes to investing.
No your not. Think of it this way, you now have the means of building a crown to ware on your trubbled brow as any good king should. Think of it as an investment in your own royalty.