I know everyone is talking about silver and gold. But here, in this weakening global economy, we have copper near $4/pound. Is this an obvious short or what am I missing ?
not to nit pick but it's 3.73 which is not a small difference. just focus on the price not the economy b/c you don't trade the economy.
Inflation. Thats what you are missing. Its like remembering when you were a kid and paying 75 cents for a comic book and seeing that they cost $3 today and being sure the price is too high and it will come down. It wont. Copper, silver and gold are all going up.
Point is guys: the QE3 inflation effect is really hitting the markets....and effectively providing a PUT option on commodities. If this effect "ends", look out below. If it doesn't, then shorting anything is stupid.
But it's not "real" .....yet : Wages must also start to rise...but they have been flat for years now. Unless that occurs, we are NOT in an inflationary environment that is sustainable.