…those boring copper elephant-in-room fundy thingies again. LME inventories are at a six month high and show no signs of stopping.
The only way that copper can perform the way it’s been performing is as a hedge against the dollar. And copper isn’t an asset class, folks! Never has been, never will be (unless this time is different, of course) and so the equal/opposite type reaction you see from copper can only be temporary. Put simply copper isn’t gold, so anyone that puts the word “copper” next to the phrase “safe haven” in the same sentence should immediately be dropped from your list of advisors. Cos sooner or later that person is heading for a fall…happens every time.
UPDATE: Thursday’s LME inventory number is just out, up 4,800MT to 402,125MT. But don’t worry, it’s just fundies. Party on Garth.