IKN

And thereby hangs a tale

Copper resumes its path

Even though the world’s trade market prices are looking evermore suspicious and losing their mantle of true price discovery…

Copper continuous contract (HG00)

…copper has spiked, dropped and now seemingly resumed its trend higher. The return to U$5.00/lb is only a matter of time, war or no war.

9 Comments

    Pretty solid trend with higher lows. I’m waiting for it to trickle down to the copper juniors.

    Reply
    Tim Las Vegas again. 17/03/22 11:31 am

    The two buzzwords going forward for most commodities- inelastic supply. The mine builders I talk to, having been one myself for a couple decades, will tell you they can’t put a decent EPC team together and the financial models going forward are fraught with danger due to the need to predict annual inflation. If you inflate capital and operating costs annually at say 4%, are you also comfortable with inflating commodity prices at 4% also? The scary 1980’s again.

    Reply

      This is why the copper trend is key, Oh Mighty Tim. We’ve been getting the crazy in nickel and others, but they don’t call him Dr. Copper for nothing. Base metals inflation signal, right here.

      Reply

    Have you seen the drawdown of copper in Shanghai this week? -32 000 ton !
    Get your copper stonks.

    Reply

    […] And to think of the flak I got for making the call at the time, too. This post to clear up any misunderstandings. […]

    Reply

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