Soaring Copper Prices Indicate Recovery

Sunday, October 25, 2009

Copper prices hit a high on Friday of just over $3 a pound -- a strong indicator that economic recovery is at hand as construction and technologies have increased their demands. Copper is a critical component in almost everything we use today, from advanced technology to the construction industry. When demand goes up it signals a that building and buying trends are moving forward.

Posted by silver_ironist at 09:31 PM | 67 COMMENTS | permalink | Comment on This Entry

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silver_ironist

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It is a good sign for sure... copper prices tanking was one of the first signs I noticed of the impending meltdown.

#1 | Posted by REDIAL at 2009-10-25 05:37 PM | Reply | Flag:

That's great because job losses is not helping the outlook much.

#2 | Posted by KBM at 2009-10-25 05:47 PM | Reply | Flag:

That's one of the biggest theft problems in My area. Copper thieves. They'll cut the copper wires and copper A/C units and leave the people stranded. Makes Me so damned mad.

Larry

#3 | Posted by LarryMohr at 2009-10-25 05:58 PM | Reply | Flag:

Are they still stealing copper?

It was a huge problem early last year... guys were getting toasted trying to steal grounding cables from substations but I thought they gave up when the price bombed.

#4 | Posted by REDIAL at 2009-10-25 06:03 PM | Reply | Flag:

Yes Sir it's a VERY BIG problem around here. One ball park lost almost all of it's copper wiring. Fucked up is what it is.

Larry

#5 | Posted by LarryMohr at 2009-10-25 06:06 PM | Reply | Flag:

"Are they still stealing copper?"

Back in the early 70's when I was a broadcast engineer I had a couple of AM stations and we were forever plowing in new ground systems because folks would dig 'em up. These were usually 180 buried solid #14 copper wires radiating out from the base of each tower about 200 feet. I even made a special narrow plow with a tube down the back to thread the wire through.

#6 | Posted by Zatoichi at 2009-10-25 06:08 PM | Reply | Flag:

Another thing they are stealing around here are Catalytic Converters STRAIGHT OFF OF THE VEHICLES. Lots of precious metals in them such as Platinum.

Larry

#7 | Posted by LarryMohr at 2009-10-25 06:14 PM | Reply | Flag:

That's fucking nuts! Soaring copper prices are a symptom of speculation and a run from the dollar. All commodity prices are rising, not just copper. Commodities are getting more expensive because the dollar is losing value.

#8 | Posted by Ray at 2009-10-25 06:21 PM | Reply | Flag:

"These were usually 180 buried solid #14 copper wires radiating out from the base of each tower about 200 feet."

Wow... that's a lot of wire. Was that for a ground plane for an antenna, lighning protection, Earth ground, or something I know nothing about?

#9 | Posted by REDIAL at 2009-10-25 06:22 PM | Reply | Flag:

Check out the dollar
jsmineset.com

Check out gold and commodities.
jsmineset.com

They're ugly.

#10 | Posted by Ray at 2009-10-25 06:26 PM | Reply | Flag:

"Ground plane."

yup, AM broadcast.

One was KOKE AM in Westlake Hills, where the wires literally lay on the rock. The other was KIXL which was a three-tower directional array. That's where I used the plow.

#11 | Posted by Zatoichi at 2009-10-25 06:36 PM | Reply | Flag:

Larry,

"Makes Me so damned mad."

Give them 10 years, damn it.

#12 | Posted by BillJohnson at 2009-10-25 07:19 PM | Reply | Flag:

Give them 10 years, damn it.

#12 | Posted by BillJohnson at 2009-10-25 07:19 PM | Reply | Flag: Flag: (Choose)
FunnyNewsworthyOffensiveAbusiv
e

I am sorry Bill Johnson I was raised if You do the crime You must do the time. If I fuck up I should pay the piper. If I don't I should be rewarded. It's how it's SUPPOSED to be.

Larry

#13 | Posted by LarryMohr at 2009-10-25 07:27 PM | Reply | Flag:

Seriously declining copper theft would seem to be a better indicator of prosperity.

#14 | Posted by morris at 2009-10-25 07:44 PM | Reply | Flag:

"Seriously declining copper theft would seem to be a better indicator of prosperity."

Assuming that low lifes who prefer to make their living stealing would get legitimate jobs in a prospering economy, you would be correct.

#15 | Posted by REDIAL at 2009-10-25 08:02 PM | Reply | Flag:

#8 | Posted by Ray

I have to agree with you there..

no demand warranting a spike in electronics especially consumer electronics

#16 | Posted by Legio at 2009-10-25 10:03 PM | Reply | Flag:

I seem to remember one of the major factors in the initial drop in copper prices was a serious cutback in production at some huge company in China that made cheap (ie Wal*Mart supplier) electric fans.

Iron ore imports from Australia to China dropped right after that.

In any case, commodities going up is good for me...

#17 | Posted by REDIAL at 2009-10-25 10:12 PM | Reply | Flag:

They do not indicate a recovery..they indicate a weakening dollar. The less the dollar is worth against other major currencies the more physical assets will cost in dollars.

It does say the OTHER world economies are starting to recover...but not necessarily ours. And if they are RISING on the small amount of economic activity that has occured (we still have near 10% unemployment) then you have to ask yourself what will happen to these prices as we continue to flood the markets will dollars and the economies REALLY recover?

Hyper - inflation...and in THIS country's case....Stag-Flation...Jimmy Carter 70's here we come.

#18 | Posted by foshaffer at 2009-10-25 10:26 PM | Reply | Flag:

"It does say the OTHER world economies are starting to recover...but not necessarily ours."

I guess it's all a matter of perspective.

I'm Canadian and live 50 miles from the border, so having the Loonie and USBuck close to par make for better shopping than Wal*Mart. Almost all goods would be 30% cheaper for me shopping in Montana even allowing for tarriffs/duties/taxes etc.

And, I work for a large mining company that sells copper, zinc, gold, coal, and all that neat stuff so things are really stating to pick up when last December we were wondering if we were going to survive.

Our stock is up 10x what it was then.

#19 | Posted by REDIAL at 2009-10-25 10:58 PM | Reply | Flag:

Three dollars a pound for copper, that's 300 pennies.
300 pennies I believe would weigh more than a pound. Can you see people taking a truck load of pennies to the scrap yard???

It's for sure copper is worth more than a worthless piece of paper money.

When the price of metals is up that looks like a sign to me that it costs more to build and construction will slow further down, putting more people out of work, I think they may be trying to give us false hope.

#20 | Posted by Dr_Feelgood at 2009-10-25 11:03 PM | Reply | Flag:

Dr Feelgood would have to use 300 1982 and before pennies to sell them for copper. 1983 and later are copper clad zinc pennies. Just a bit of useless trivia.

Larry

#21 | Posted by LarryMohr at 2009-10-25 11:11 PM | Reply | Flag:

Wrong - The chinese have been purchasing our precious metals up at breakneck speed for quite some time, as I've been warning for several months:

www.telegraph.co.uk

"China's State Reserves Bureau (SRB) has instead been buying copper and other industrial metals over recent months on a scale that appears to go beyond the usual rebuilding of stocks for commercial reasons.

Nobu Su, head of Taiwan's TMT group, which ships commodities to China, said Beijing is trying to extricate itself from dollar dependency as fast as it can.

"China has woken up. The West is a black hole with all this money being printed. The Chinese are buying raw materials because it is a much better way to use their $1.9 trillion of reserves. They get ten times the impact, and can cover their infrastructure for 50 years."

Perhaps we're just onto them a little too late? WAKE UP, PEOPLE!

...must now go count the pennies we've been dropping into cans and jars for the past twenty years...

#22 | Posted by nanc at 2009-10-25 11:11 PM | Reply | Flag:

#21 - Larry - my father left our children quite a coin collection - most pre-1950 coins.

#23 | Posted by nanc at 2009-10-25 11:13 PM | Reply | Flag:

#21 - Larry - my father left our children quite a coin collection - most pre-1950 coins.

Posted by nanc at 2009-10-25 11:13 PM | Reply

Now THAT is nice. Betcha proud of them too. I know I sure would be.

Larry

#24 | Posted by LarryMohr at 2009-10-25 11:14 PM | Reply | Flag:

#24 - mostly silver and copper - He said, "Save them - you'll never know when you'll need them." The box probably weighs about 30 pounds - they like to rifle through it and mess everything up and then put it back - they've been doing that for the past 14 years! We have a goodly portion of his library (mostly native american schtick) and other collectibles. And to think, we'd like to travel lightly when they leave home!

#25 | Posted by nanc at 2009-10-25 11:18 PM | Reply | Flag:

I can understand that one Nanc. Too bad they are all together instead of separated. Might be worth more otherwise.

Larry

#26 | Posted by LarryMohr at 2009-10-25 11:20 PM | Reply | Flag:

Read the remarks of the snivling shit Rtards on this thread and you will see a pattern: These cocksuckers LOVE failure. No wonder the party of NO ideas, the party of No votes and the party of Geedy Old Perverts will forever be remembered as the Party of Fail!!!

Rest in peace GOP. Better yet, roast in hell for 6,000 years!!!!

#27 | Posted by axe at 2009-10-25 11:23 PM | Reply | Flag:

Larry - My father was ocd - all the coins were put into plastic tubes by dates and some by dates and mint - who really cares when it comes right down to it?

#28 | Posted by nanc at 2009-10-25 11:29 PM | Reply | Flag:

You know I would dearly love to get My hands on a bunch of 1943 Steel wheat pennies. The only Year they made pennies out of steel. I would love to find an "Exploded" one too. What I mean by exploded I am refering to those coins that were around 3.5 inches in diameter Now THAT would rock.

Larry

#29 | Posted by LarryMohr at 2009-10-25 11:30 PM | Reply | Flag:

This is true Nanc. It's the thought that Counts.

#30 | Posted by LarryMohr at 2009-10-25 11:31 PM | Reply | Flag:

We only have a few "silver" looking wheat pennies, but a buttload of the others.

#31 | Posted by nanc at 2009-10-25 11:33 PM | Reply | Flag:

Those "Silver" looking wheat pennies ARE the 1943 STEEL Wheat pennies that I was refering to. The copper was scarce because of the War effort so they made them out of steel.

Larry

#32 | Posted by LarryMohr at 2009-10-25 11:40 PM | Reply | Flag:

Well, Larry - when the time comes I suppose we could trade one for a loaf of bread? I don't keep up on the coin thing like our son does - he purchased some euros a couple of years ago at a good price so I'll leave that area to him.

#33 | Posted by nanc at 2009-10-25 11:45 PM | Reply | Flag:

I know virtually NOTHING about coins except for that one particular coin. I find them special.

#34 | Posted by LarryMohr at 2009-10-25 11:48 PM | Reply | Flag:

I'm kind of hoping the Chinese just looked around and realized the world supply of raw materials was still sitting in some mountains somewhere on the other side of the planet and not at their beck and call like before.

Be good to see coal back to $300/tonne...

#35 | Posted by REDIAL at 2009-10-25 11:51 PM | Reply | Flag:

I went in to scrap some old copper pipe a while back. It takes a mountain of paperwork and a notary public now to sell scrap copper in Hawaii.

#36 | Posted by RingMaster at 2009-10-26 01:18 AM | Reply | Flag:

Okay, here's the thing: copper prices are rising because all commodity prices are rising, because all the rats are leaving the sinking ship of the stock market. The fact that US Bonds are trading so low leaves no other option for securities traders who don't want to be in the stock market right now. Unfortunately, this is making a commodities bubble. It'll pop around next April, turning this recession into a depression. If you look at the Great Depression, or any other depression, there is a point, around halfway to the bottom of the markets, when a bounce happens and it seems like there is a recovery beginning. This is a fluke caused by reinvestment in an attempt by parties to buy securities at a deflated value. To quote Tyler Durden, "Where you are no, you don't even know what the bottom will be like." So get ready for Recession 2.0!

#37 | Posted by s1l3nt_c0y0t3 at 2009-10-26 05:21 AM | Reply | Flag:

#37 | Posted by s1l3nt_c0y0t3

That's my take also, but I hope we're both wrong.

#38 | Posted by STIRSUMUP at 2009-10-26 05:37 AM | Reply | Flag:

----------

Rays stopped watch is somewhat on for this one. It means that the chinese are fleeing the dollar as fast as they can any way that they can.

#39 | Posted by Shawn at 2009-10-26 06:31 AM | Reply | Flag:

The dollar is slipping about 1.5% a month against many major and minor currencies. Compare that to these inflation figures and then ask your self why this story was written. Construction boom? In China, but not here.

#40 | Posted by nutcase at 2009-10-26 07:46 AM | Reply | Flag:

maybe it's time to start talking about methods of preserving food and growing a garden.

#41 | Posted by Axiom at 2009-10-26 07:53 AM | Reply | Flag:

#41
Maybe.

#42 | Posted by Hagbard_Celine at 2009-10-26 07:55 AM | Reply | Flag:

#7----- Larry, palladium, most catalytic converters are comprised of palladium although diesels use some platinum.

#43 | Posted by matsop at 2009-10-26 07:57 AM | Reply | Flag:

Copper prices could be moving up because of some actual construction demand etc. from an improving economy (especially in China) but also because of the "dollar carry trade" and easy money chasing assets. Also, it could be the repairing of depleted inventory (multiple possibilities).

#44 | Posted by matsop at 2009-10-26 08:03 AM | Reply | Flag:

Ray is right also-- the falling dollar is having an impact on copper prices.

#45 | Posted by matsop at 2009-10-26 08:05 AM | Reply | Flag:

41 & 42 - definitely. See my post on china - the supply is more than likely dwindling.

#46 | Posted by nanc at 2009-10-26 08:26 AM | Reply | Flag:

Plummeting Dollar has nothing to do with the increases in price now does it?

Lame article.

#47 | Posted by GalaxiePete at 2009-10-26 09:46 AM | Reply | Flag:

#37 | Posted by s1l3nt_c0y0t3
#38 | Posted by STIRSUMUP

I am with you on that. I don't have my money in the stock market at all right now. I am seeing and hearing things that aren't making the news like they should be. For one - the mortgage crisis is not over by a long shot.

#48 | Posted by GalaxiePete at 2009-10-26 10:24 AM | Reply | Flag:

Is the price increase from demand or lack of supply?

#49 | Posted by Sniper at 2009-10-26 11:04 AM | Reply | Flag:

'As of October 23rd copper is at $3.019 a pound. This is up from $2.00 a pound last year which triggered a rash of layoffs in Arizona's Freeport/McMoRan Copper and Gold operations last year.'

I would guess that would be true for most mines.

#50 | Posted by Sniper at 2009-10-26 11:38 AM | Reply | Flag:

Expansion of electric grid in China and India is effecting copper prices dramatically.

www.moneyweek.com

"In an increasingly gloomy macroeconomic landscape the only
bright spot appears to be the expected boost to metal
consumption from the massive stimulus packages being planned by
China and the United States."

www.reuters.com

#51 | Posted by danni at 2009-10-26 12:44 PM | Reply | Flag:

The US stimulus is NOT going to consume any metal. It will be used to enlarge government which only consumes dollars.

The little o needs to 'lead, follow or get the hell out of the way'.

#52 | Posted by Sniper at 2009-10-26 12:58 PM | Reply | Flag:

#41 Axiom> maybe it's time to start talking about methods of preserving food and growing a garden.

It's always a good time to know how to grow your own food (or at least a portion of it). Even a window box can grow herbs or a small tomato plant or two. And once you've learned how to grow it and enjoy fresh food, quantities can be upscaled to provide a bigger portion of one's food budget.

#53 | Posted by AKat at 2009-10-26 01:23 PM | Reply | Flag:

Do they even put copper in a penny coin any more??

This doesn't seem to mean anything.

How is there going to be a construction boom or pick up when they have millions of foreclosed properties on the market?? And that is still continuing?

(Filled with fraud on the home lending program btw--for the first time homebuyers getting 8k--19,000 homes sold were fraudulent).

This seems to have to do with someone buying up copper, the dollar devalued--continuing--and inflation coming..

#54 | Posted by MURPHY at 2009-10-26 01:40 PM | Reply | Flag:

maybe it's time to start talking about methods of preserving food and growing a garden.

Bad idea. We are not going to solve anything by feeding all the useless eaters.

#55 | Posted by RingMaster at 2009-10-26 04:03 PM | Reply | Flag:

Do they even put copper in a penny coin any more??
#54 | Posted by MURPHY

No. That's why the Jews concentrate on Nickles.

#56 | Posted by wisgod at 2009-10-26 04:05 PM | Reply | Flag:

Ray:
NEW YORK, Oct 26 (Reuters) - The U.S. dollar extended gains against the euro on Monday, as falling stock and commodity prices dampened risk appetite, prompting investors to lock in recent gains in other currencies.

The euro last traded at $1.4849 EUR=, down 1 percent on the day, after earlier hitting a 14-month high at $1.5064 on electronic trading platform EBS.

#57 | Posted by northguy3 at 2009-10-26 04:13 PM | Reply | Flag:

The US stimulus is NOT going to consume any metal.

So that bridge I drove over with the stimulus sign on it really wasn't there? I must have really good suspension on my car. Then again, it was made in Chicago, USA so it would be good.

#58 | Posted by northguy3 at 2009-10-26 04:16 PM | Reply | Flag:

Northguy

The dollar is in a long term decline. These gains will be temporary as will be the stock market rebound.

I would see the fall in gold and silver prices as a buying opportunity.

To compare the dollar to the euro or any other fiat currency is like comparing the descending rates of parachute jumpers. They are all heading towards ground zero.

#59 | Posted by Ray at 2009-10-26 04:23 PM | Reply | Flag:

Rays stopped watch is somewhat on for this one. It means that the chinese are fleeing the dollar as fast as they can any way that they can.

#39 | Posted by Shawn

Shawn - My watch is reasonably accurate. You're more of an ignoramus than you give yourself credit for.

#60 | Posted by Ray at 2009-10-26 04:28 PM | Reply | Flag:

So that bridge I drove over with the stimulus sign on it really wasn't there? I must have really good suspension on my car. Then again, it was made in Chicago, USA so it would be good.

#58 | Posted by northguy3

There hasn't been enough time passed for the bridge to be designed, bid, fabricated, erected, painted, and paved since they passed the stimulus. You better read that sign a little closer and see what it realy said.

The sign realy said, "nor, you have been fooled by the dems again."

#61 | Posted by Sniper at 2009-10-26 04:39 PM | Reply | Flag:

"There hasn't been enough time passed for the bridge to be designed, bid, fabricated, erected, painted, and paved since they passed the stimulus."

How about much-needed repairs? Time enough?

#62 | Posted by Danforth at 2009-10-26 04:40 PM | Reply | Flag:

Re #49 "Is the price increase from demand or lack of supply?"

We're turning down sales due to lack of ability to produce. Not sure what's up with the Aussies...

#63 | Posted by REDIAL at 2009-10-26 07:00 PM | Reply | Flag:

Hey, I just posted what the experts had to say about why the cost of copper is rising. If it doesn't fit with your ideological conspiracy theories I'm sorry as hell. Am I laughing at you???

Yes.

#64 | Posted by danni at 2009-10-26 07:09 PM | Reply | Flag:

No. That's why the Jews concentrate on Nickles.

#56 | Posted by wisgod

That is not nice and beneath you.

#65 | Posted by MURPHY at 2009-10-26 08:55 PM | Reply | Flag:

china just won the contract for that huge copper deposit in afghanistan.

china won the bid for the iraq oil field.

while we are dying and wasting tax dollars over there china is getting all the plums.

#66 | Posted by visiter at 2009-10-26 11:09 PM | Reply | Flag:

That is not nice and beneath you.

#65 | Posted by MURPHY

You're right. I mis-spelled nickle.

#67 | Posted by wisgod at 2009-10-27 07:22 AM | Reply | Flag: