Copper Price Drop - What It Really Means
Since the beginning of August, i.e. in less than two months, the price of copper has dropped around 25%. That's a big drop in a short period of time. If markets throw light on what's coming, it's not a pretty sight.
Copper is known as "Doctor Copper." The term "Doctor" refers to copper as having a PhD in economics. because copper has so many uses in the world's economy. Therefore it's price is closely followed as one way to glimpse the future of the economy.
So this sort of steep drop in a brief time period is rattling. It would seem to be telling us that the world economy will be and/or is slowing down. This would reinforce the view of those who say we're heading into a "double-dip" recession. It would also support the view that we are already in a recession, that the last recession never ended, and, I would say, that we're heading into what will be described as a depression. What it doesn't say is that things look rosey.
So whatever the stock market does in coming days and weeks, whatever happens to the price of gold and silver, the price of copper is already saying - or rather shouting - that something is amiss in the world's economy. Exactly what that is, I'm certain we'll be seeing in the not too distant future.
Copper is known as "Doctor Copper." The term "Doctor" refers to copper as having a PhD in economics. because copper has so many uses in the world's economy. Therefore it's price is closely followed as one way to glimpse the future of the economy.
So this sort of steep drop in a brief time period is rattling. It would seem to be telling us that the world economy will be and/or is slowing down. This would reinforce the view of those who say we're heading into a "double-dip" recession. It would also support the view that we are already in a recession, that the last recession never ended, and, I would say, that we're heading into what will be described as a depression. What it doesn't say is that things look rosey.
So whatever the stock market does in coming days and weeks, whatever happens to the price of gold and silver, the price of copper is already saying - or rather shouting - that something is amiss in the world's economy. Exactly what that is, I'm certain we'll be seeing in the not too distant future.
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