But what about copper ?

Discussion in 'Metal Futures' started by syswizard, Sep 23, 2012.

  1. 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 ?
     
  2. 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.
     
  3. Really ? So there is no effect on commodities prices from economic activity levels ?
     
  4. Nice breakdown in HGZ2 today.
     
  5. of course there is effect...you'll see how QE3 will stimulate prices for commodities
     

  6. 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.
     
  7. what about a share of IBM. Will it also go up due to inflation?
     
  8. 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.
     
  9. yes, inflation is very important here
     
  10. 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.
     
    #10     Sep 30, 2012