Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Copper Is In Full Meltdown Mode Again In Shanghai (Dr Copper)
BI ^ | 3-12-2014 | Joe Weisenthal

Posted on 03/11/2014 10:04:27 PM PDT by blam

Copper Is In Straight Up Meltdown Mode Again In Shanghai

Joe Weisenthal
Mar. 11, 2014, 9:22 PM

Copper prices — which are often seen as a proxy for the Chinese economy, if not the entire global economy — have been getting crushed.

And they're in full meltdown mode tonight.

Via Deirdre Wang Morris, here's the chart of Shanghai Copper prices limit down.


(Excerpt) Read more at businessinsider.com ...


TOPICS: News/Current Events
KEYWORDS: china; commodities; copper; economy

1 posted on 03/11/2014 10:04:29 PM PDT by blam
[ Post Reply | Private Reply | View Replies]

To: blam


2 posted on 03/11/2014 10:05:49 PM PDT by blam
[ Post Reply | Private Reply | To 1 | View Replies]

To: blam

Copper has more to do with weak Chinese exports *and* China’s shadow banking system that will sometimes use copper as collateral, or as a hedge.


3 posted on 03/11/2014 10:08:36 PM PDT by Southack (The one thing preppers need from the 1st World? http://tinyurl.com/ktfwljc .)
[ Post Reply | Private Reply | To 2 | View Replies]

To: blam

Building a Faraday cage in my garage just got cheaper!


4 posted on 03/11/2014 10:18:27 PM PDT by jcon40
[ Post Reply | Private Reply | To 1 | View Replies]

To: blam

Now what am I going to do with all these pennies??


5 posted on 03/11/2014 10:18:38 PM PDT by Kartographer ("We mutually pledge to each other our lives, our fortunes and our sacred honor.")
[ Post Reply | Private Reply | To 1 | View Replies]

To: Southack

China has used copper as lower cost valuable metals substitute for gold and silver .

As such they have created a bubble in copper similar to what we have seen in gold and silver prices.

Copper has no real precious metal value like silver or gold, and it’s value is really as an industrial metal.

The highly inflated cost of copper has had a negative impact economically and the general slowing of the economy is killing industrial demand for copper at any price.

Basic supply and demand is taking over and the inflated bubble price of copper is dropping to economically sustainable prices via classical supply and demand

A lot of people are going to find out you cannot back a currency reserve with copper, much to their dismay


6 posted on 03/11/2014 10:20:04 PM PDT by rdcbn
[ Post Reply | Private Reply | To 3 | View Replies]

To: blam

Has this large a divergence between DrCop and stock indexes ever before occurred? (I mean over the last year(s)) Stocks would seem to have a long way to go to catch up (or down).


7 posted on 03/11/2014 10:21:09 PM PDT by steve86 (Some things aren't really true but you wouldn't be half surprised if they were.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: blam

Sucks for me and all that brass I have been collecting.


8 posted on 03/11/2014 10:22:04 PM PDT by mylife (Ted Cruz understands the law, and is not afraid of the unlawful.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kartographer

“Now what am I going to do with all these pennies??”

the real copper ones were at the break even point if you melted them when copper hit 43 cent a pound.


9 posted on 03/11/2014 10:23:54 PM PDT by dalereed
[ Post Reply | Private Reply | To 5 | View Replies]

I’ll still make money on the brass that is loaded.


10 posted on 03/11/2014 10:24:20 PM PDT by mylife (Ted Cruz understands the law, and is not afraid of the unlawful.)
[ Post Reply | Private Reply | To 8 | View Replies]

To: Kartographer
"Now what am I going to do with all these pennies??"

Ha, ha.
(and my nickels)

Their time will come.

11 posted on 03/11/2014 10:28:41 PM PDT by blam
[ Post Reply | Private Reply | To 5 | View Replies]

To: rdcbn
I read another article, which I can't find, that the big problem is that serious collaterial on many millions/billions in loans is missing (sold). Now loans are beginning to be defaulted on.

Anyway....

The Nikkei Gets Slammed, And It's A Sea Of Red In Asia

The Nikkei is down 2.1% to 14,902, as a strong yen weighed on stocks, and on profit taking. "The Nikkei is down 2% as risk aversion radiates and propagates from China to Asia," Societe Generale's Sebastien Galy wrote in an email to clients.

12 posted on 03/11/2014 10:38:00 PM PDT by blam
[ Post Reply | Private Reply | To 6 | View Replies]

To: blam
Okay. Here's the article about the collateral:

"Magic" Collateral: A Frank Look At The Sheer Credit Horror About To Be Unleashed In China

13 posted on 03/11/2014 10:40:34 PM PDT by blam
[ Post Reply | Private Reply | To 12 | View Replies]

To: Kartographer

Drill a hole in them and use them as washers. Cheaper than washers.


14 posted on 03/11/2014 10:41:43 PM PDT by gunsequalfreedom (Conservative is not a label of convenience. It is a guide to your actions.)
[ Post Reply | Private Reply | To 5 | View Replies]

To: blam

It’ll likely unleash another wave of short-term currency distortion favoring the dollar, seriously. I’ve been watching this stuff since late 2007 and this will make the fourth time. Flight to safety, part of the reason why Nikkei has done so poorly very recently, they don’t want a strong Yen but are getting a strong Yen, which weighs negatively upon exports.


15 posted on 03/11/2014 10:49:28 PM PDT by RegulatorCountry
[ Post Reply | Private Reply | To 13 | View Replies]

To: blam

Maybe now the tweekers will stop stealing all the copper wire out of the streetlights


16 posted on 03/11/2014 10:58:45 PM PDT by gracie1 (Look, just because you have to tolerate something doesnÂ’t mean you have to approve of it.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kartographer

Doesn’t matter, They are almost all zinc.


17 posted on 03/11/2014 11:01:12 PM PDT by arthurus (Read Hazlitt's Economics In One Lesson ONLINEhttp://steshaw.org/economics-in-one-lesson/)
[ Post Reply | Private Reply | To 5 | View Replies]

To: arthurus
"Doesn’t matter, They are almost all zinc."

No Ours.

Melt Value Of Coins

Penny: 1909-1982 = 95% copper.

Penny: 1982-2014 Cent (97.5% zinc) *

18 posted on 03/11/2014 11:07:52 PM PDT by blam
[ Post Reply | Private Reply | To 17 | View Replies]

To: Kartographer

They won’t go below $1.47-$1.53/lb (depending on wear) :-)


19 posted on 03/11/2014 11:38:42 PM PDT by Axenolith (Government blows, and that which governs least, blows least...)
[ Post Reply | Private Reply | To 5 | View Replies]

To: Axenolith

Pre 1982 Cu, or sorted 1982’s of course (Cu ones)...


20 posted on 03/11/2014 11:41:31 PM PDT by Axenolith (Government blows, and that which governs least, blows least...)
[ Post Reply | Private Reply | To 19 | View Replies]

To: blam

21 posted on 03/11/2014 11:55:49 PM PDT by Liberty Valance (Keep a simple manner for a happy life :o)
[ Post Reply | Private Reply | To 1 | View Replies]

To: jcon40

Faraday cage?

The are made out of Steel not Copper.

Steel blocks the magnetic component and copper or aluminum will block the RF component.


22 posted on 03/12/2014 1:42:05 AM PDT by Texas Fossil (Texas is not where you were born, but a Free State of Heart, Mind & Attitude!)
[ Post Reply | Private Reply | To 4 | View Replies]

To: blam

Dr. copper often acts as a herald to silver and gold prices, I wonder if it will work out that way this time?


23 posted on 03/12/2014 4:11:52 AM PDT by 2001convSVT (Going Galt as fast as I can.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: 2001convSVT

24 posted on 03/12/2014 7:27:14 AM PDT by blam
[ Post Reply | Private Reply | To 23 | View Replies]

To: Texas Fossil

agree Faraday cages can be made of steel but you may want to do a search on Faraday cage + copper and see what that yields

it depends on what youre using them for

Faraday built his of copper


25 posted on 03/12/2014 7:40:40 AM PDT by jcon40
[ Post Reply | Private Reply | To 22 | View Replies]

To: blam
It doesn’t look like gold will retreat anytime in the near future. Thanks for the chart blam.
26 posted on 03/12/2014 7:58:54 AM PDT by 2001convSVT (Going Galt as fast as I can.)
[ Post Reply | Private Reply | To 24 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson