The charts I found on copper look like it rose steadily through at least most of 2008. I’d’ve even almost thought people were looking to copper like they do to gold!
The chart at the top of th page shows copper plunging from Juy ‘08 until the end of the year Copper like a leading indicator in the beginning of ‘09 by turning around and commencing a steady powerful rise, almost tripling in price by the end of Jan 10. It has moved sideways since, and has just plunged below the 100 day moving average. If copper is a leading indicator, that’s bad news.
To me, copper is an industrial commodity, like steel, or cement, or anything else that hurts when you drop it on your foot. I think these normally rise during periods of economic growth, or from March 2009 to present, a recovery. During a deflationary collapse, like we had in the 30’s depression, or 1980 to 1981, or ‘2008, commodities fall out of bed. So it seems to me that copper’s recent plunge in recent weeks could be signaling bad times ahead.
I find Gold harder to understand. It has limited industrial usefulness (unlike platinum). It’s a great inflation hedge. And it’s supposed to be a “currency of last resort in times of uncertainty” and I don’t know what the hell that means.
I’m not out of the market, I’m just being careful with most of my savings in cash or short term bonds.