Skip to comments.Itís Time to Sell Copper
Posted on 03/19/2013 10:34:52 AM PDT by blam
Its Time to Sell Copper
By Greg Guenthner
Dr. Copper is crumbling.
The versatile industrial metal best known as a bellwether for worldwide economic growth has finally hit the skids
I warned you last month that copper was fast approaching an important inflection point. Now, the Cyprus crisis was kind enough to tip copper over the edge. It fell hard in late Sunday trading from $3.50 to $3.44.
The massacre continued into Monday. When the dust settled, copper found itself nearly a dime below critical support
Yet while the world economy appears poised for a slowdown, U.S. stocks continue to fight off lower copper prices for the past 15 months. The S&P has defied coppers weakness since the metal peaked in 2011
The price of copper had been dangerously close to crashing since the beginning of March. Now that its multiyear uptrend is in the rearview, were in store for lower prices.
Huge inventory surpluses have helped push copper lower. In London, copper stockpiles rose to 543,925 tons yesterday, the highest level in 3 years. In Shanghai, stockpiles climbed to 231,872 tons, the highest level recorded since 2003, according to Bloomberg.
If you havent sold copper yet, this key turning point is your cue. $3.30 is my initial downside target. If weakness persists, we could see copper test its 2011 lows near $3.
I knew that someday all that wire I stripped would come in handy ;-)
Why sell it now when it’s going down? That’ll just drive the market down even further.
near-term looks almost ready to buy.
Long term, tough call. I am surprised that the increased demand for ammunition has not put support in place, unless their is an incredible stock of recycled copper we don’t know about.
Copper stolen from foreclosed homes is a fairly large supply.
Maybe you bought it at $2 and you decide it’s time to lock in some profit.
Good. It would be nice to be able to buy a spool of 12-2/WG without taking out a loan.
Coincidentally/ironically the word “copper” comes from the Greek word for the island of Cyprus, or “Kupros” which was a rich source of the mineral in ancient times.
How about SILVER?
A visitor from the future told me to invest in Zinc.
buy , sell?
why is it stagnant?
I was just reading that D’Aconia Copper mines was going to have a disaster tomorrow...
At some point....we'll have some serious inflation.
I heartily advise people to not touch copper with a 10-foot pole, as it has long been a totally controlled market, that does not want outsiders profiting from it.
To cite a very good example, remember when the US went from thick copper cables to fiber optic? It ended up with enough surplus copper to build half a dozen aircraft carriers entirely out of pure copper. And what happened to the price of copper? Nothing. All that copper never reentered the market.
Sure, if you want to nickel and dime copper, feel free. But stay away from ambitious investments in it, or you will get cleaned out.
Ping. Look at the image in Post #18.
There is a big difference between copper producers controlling the market, and De Beers monopolistic control, and the Hunt brothers trying to corner silver.
To start with copper at the production level, even small prices in copper will open or close mines, a very expensive proposition. And the ore is so low grade that when the price of copper drops, at times the gold mined as a by product is actually worth more than the copper.
So the producers very much want price stability. Second, because copper is fairly low value, their biggest concerns are purposes and companies that consume a lot. Another good reason for stability being provision contracts. Large amounts of copper sold at fixed prices.