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Posted on 02/05/2010 8:29:30 PM PST by blam
Falling Copper Prices: The Doctor Is Out
By Bill Bonner
02/05/10 Baltimore, Maryland – The bust in the economy ain’t so bad either. Credit default swap spreads are widening. Bond yields are rising…especially in Europe.
The service sector in the US is performing below expectations.
Oh…and listen to this:
“More weigh walking away from mortgages,” says The New York Times. As anticipated, people are warming up to the idea of stiffing their mortgage lenders. Why not? Millions of houses are underwater; let the mortgage company deal with them.
Delinquent mortgage payments have risen to over 10%.
The Baltic Dry Index is dropping, too.
And Dr. Copper is ‘set for catastrophe,’ says a copper expert.
Copper, you’ll recall, is the metal with a Ph.D. in economics. It’s the metal that you find in home wiring, refrigerators, offices, automobiles, cell phones – just about everything. So, when the price of copper goes down it means something. Usually, it means business is slowing down.
Copper has fallen more than 10% in 2010. It will probably go down a lot further. Chinese companies stockpiled the metal last year, causing its price to double. Now, they’ve got more than enough.
And if the world economy is still slowing down, which is what the Baltic Dry Index is probably telling us, you can expect the price of copper to collapse.
Stay tuned.
Maybe this will help the ammo situation.
Looks like food, cigarettes, and ammo would be a good investment.
Ammo prices have already started to come down a little.
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>> We can dig up the copper now, and sell it.
I have a shotgun! YOU STAY THE HELL *AWAY* FROM MY PLUMBING. This is your *ONLY* warning!
So will fewer guys be electrocuted?
Yes.
Well, ‘they aren’t making any more of it’; and, worse, some years ago, Scientific American thought that our civilization would run out of copper before running out of oil - it was thought that all of the accessible copper mines on Earth had been discovered, which may or may not still be true.
I’d hang on to that copper wire - it might be useful for the hundreds of millions of electric cars.
Time was when the richest concentration of copper was under the streets of NYC.
Darn, what am I going to do now with those hundreds of thousands of pennies I stockpiled?
If they’re post 1984, you won’t have to worry about the value of the pennies.
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This is FIOS. This replaces copper. We can dig up the copper now, and sell it. Lots of it.