Posted on 10/25/2014 10:47:46 AM PDT by blam
Tyler Durden
10/25/2014
18 months ago we first brought the world's attention to the end of what has now been exposed as among the largest ponzi schemes in history - the Chinese Commodity Financing Deals (CCFDs) - pointing out how this meant commodities like copper were likely to come under pressure as firms liquidate what minimal holdings they had (and sell out futures hedges) to manage the risk of unwinds in these quasi-collateralized deals. Since then, copper prices have indeed plunged, as has global growth expectations and global bond yields as a realization that 'demand' implied by previous prices was entirely artificial. Now, as Goldman notes, the real world is catching up (or down) to the reality of mal-investment and how copper is set to drop notably further...
Metals and mining commodities – including the base and bulk commodities, steel and cement – are highly exposed to a slowdown in the Chinese property, with over 40% of Chinese demand for cement and copper in particular consumed in the construction sector. The recent slowdown in Chinese property sales, prices and early-cycle new starts has most impacted physical demand for (and sentiment towards) commodities exposed to the earlier stages of China’s construction cycle – steel and iron ore – which have underperformed commodities more exposed to latter stages of the construction cycle, such as copper. However, as the recent slowdown in new starts flows through to late-cycle, copper-intensive construction completions, we expect copper to come under further pressure
(snip).
(Excerpt) Read more at zerohedge.com ...
Canada stop using Pennies and killed the Copper market ?
its worse than that....it means I’ve been sorting and storing pre 1982 pennies by the thousands for nothing...
Heck, our penny is only 2.5% copper.
Not long ago hyperinflation seemed a likelihood , and now it’s deflation apparently rearing it’s ugly head - or so THAT seems.
The only thing I’ve learned is that the future is unpredictable.
Goldbug ping.
(Ahem) I have 25,000 nickels out in the shed...I'm saving them for their high copper content.
“Not long ago hyperinflation seemed a likelihood , and now it’s deflation apparently rearing it’s ugly head - or so THAT seems.”
I’d be ok with that. Mostly I just have cash because I don’t trust the market, have more silver than I can reasonably move, don’t want the tax consequences or monitoring that goes with gold, and aren’t in a place to have rentals yet.
The worst case scenario for all of us is deflation followed by hyperinflation. That’s probably what we will get since the effect from the printing of money has obviously been delayed.
“.....it means I’ve been sorting and storing pre-1982 pennies by the thousands for nothing.”
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You’re not the only one! I’ve been doing the same thing for a number of years, saving all the pre-1982 Lincoln cents.
I’m going to hold on to them anyway. At least they’re still worth face value. Besides, copper prices will rise again eventually if we wait long enough.
I saw a story on the news about a year or two ago about a guy in Texas. He went to his local bank, and had them arrange, for him, the purchase of 20 million nickels for a face value of one million dollars.
I wonder where and how he stores them all.
Pocket change...
Do you foresee a gold drop? I bought in at $1223. it went up past $1800, I stayed in and now it’s back down.
Silver’s in the dumps too.
That's Texas billionaire Kyle Bass:
BTW, he has a gigantic, over-stocked survival 'compound' somewhere in Texas and he's a big gun guy too.
See what Harvey Organ thinks:
Harvey Organ- By December Whole Thing Going to Collapse
I bought Krugerrands in 1992 at $382.00 each. They look reddish because they are alloyed with copper. They are legal currency.
I didn’t know that was Kyle Bass! I’ll bet he’s got plenty of silver and gold coins stockpiled, too.
Right now, the pre-1982 pennies are worth twice their face value in copper, about 2 Cents.
I had done the same thing, getting rolls from banks and sorting through them. Found a bunch of dimes in the rolls, and a 1909-VDB in decent shape.
Then I realized it was taking up room, and facing a move, would be a pain to move.
So I took them to a bank in a couple of trips, and got $384.00! That means I had 38,400 of them.
Just remember, if copper goes north again, US nickels are 75% copper.
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