It seems that Doctor Copper is feeling ill these days.
Goldman Sachs Group Inc. exited a long-term bullish position on copper and slashed its price forecast for 2025 by almost $5,000, citing shrinking demand in China.
Copper surged to fresh highs above $11,000 a ton in May as funds piled in. At the time, Currie — who joined Carlyle Group Inc. last year as chief strategy officer — described the metal as the best trade he’d ever seen. But prices have since slumped by about 18%, with ballooning inventories and a rare surge in exports from China sending alarms about consumption in the world’s top consumer.
Any increase in a commodity price is typically temporary, because as the price goes up the easier it is to support marginal producers, which increases the supply.
Unless of course your government tries to corner the market on the commodity, as a form of economic warfare.
But Garf Turner says the economy is running on all cylinders and we should stop believing our lying eyes. I don’t know if there’s a bigger establishment shill for the Liberals and Demarxists than ol Garf himself, the reddest of Red Tories there ever was.
Copper is a good place to put some money.
No new mines are happening.
Nutty nutbars are always fighting to close existing ones.
Prices will always fluctuate but demand is not disappearing.
Gold is stupid compared to copper.
How many electric motors or transformers need gold?
Well … the good news is that the copper thieves will get less per pound for our street light wiring …
https://www.nbcbayarea.com/news/local/copper-wire-thieves-street-lights-bay-area/3642531/
The copper price is a good proxy on the world economy ($4.09/lb). Add low oil prices (<$70/bbl) and you have a world economy sliding into recession. When things get really bad, everything goes down, including gold. I assume this is investors piling into the US dollar. But gold has been going up (and silver) now near all-time highs. This suggests countries are selling the US dollar and buying gold. Regardless, 2025 is not going to be a good year for the economy. It's the year of the Baby Boomer.
The world is waking up to the death of the EV.