Pieces of the jigsaw puzzle thread

JulieW · Apr 3, 2017

Big picture stuff for stackers.

China copper demand is again on a boom swing. It happened in 2004/2005, when Shanghai inventories rose above the London Metal Exchange (LME) inventories, which is the world's standard. A massive bull market ensuedand the same thing is happening again, right now:

Trump's $500-billion infrastructure plan has already driven copper prices up, and coupled with Chinese demand, this has real staying power.

Continued workers' strikes at major copper mines are further boosting prices.

The Fed raised key interest rates after a two-day policy meeting last week, and this has weighed on the dollar and benefitted copper prices, making it one of the best stocks to add to an investor portfolio right now.

We're going to be short on supply, and the shortage is expected to become evident in the first half of this year, where we could see a repeat of the 'China boom' of 2005or even better. Goldman Sachs reaffirmed its bullish stance on the red metal and warns of a serious supply risk which could possibly lead to an aggressive price spike.

marketoracle.co.uk
Click to expand...

JulieW · Apr 3, 2017

In expanding the use of national currencies for transactions, it could also potentially reduce the volatility of yuan and ruble exchange rates. The clearing center is one of a range of measures the People's Bank of China and the Russian Central Bank have been looking at to deepen their co-operation, Sputnik reported.

One of the most significant measures under consideration is the previously reported push for joint organization of trade in gold. In recent years, China and Russia have been the world's most active buyers of the precious metal. On a visit to China last year, the deputy head of the Russian Central Bank Sergey Shvetsov said that the two countries want to facilitate more transactions in gold between the two countries.

"We discussed the question of trade in gold. BRICS countries are large economies with large reserves of gold and an impressive volume of production and consumption of this precious metal. In China, the gold trade is conducted in Shanghai, in Russia it is in Moscow. Our idea is to create a link between the two cities in order to increase trade between the two markets," First Deputy Governor of the Russian Central Bank Sergey Shvetsov told Russia's TASS news agency.

In other words, China and Russia are shifting away from dollar-based trade, to commerce which will eventually be backstopped by gold, or what is gradually emerging as an Eastern gold standard, one shared between Russia and China, and which may day backstop their respective currencies.

Meanwhile, the price of gold continues to reflect none of these potentially tectonic strategic shifts, just as China - which has been the biggest accumulator of gold in recent years - likes it.

zerohedge
Click to expand...

sammysilver · Apr 3, 2017

I'm going to melt down my fifties, throw away the silver, and get a 300% return on the copper!

serial · Apr 3, 2017

sammysilver said:

I'm going to melt down my fifties, throw away the silver, and get a 300% return on the copper!
Click to expand...

happy to save you the trouble by swapping one of my 1c coins for each of your round 50's
Yes i know you get more copper this way but i am in a charitable mood

JulieW · Apr 3, 2017

p.s.

consistently throughout the decades and across the entire globe, one can very effectively see precisely where we all as a whole, and any particular country is heading economically, simply by watching the price and what they are currently doing with copper.

finicky · Apr 3, 2017

The 5 year weekly chart of the continuous contract for Copper. Definitely a bullish looking chart to my eye. The moving averages shown are 10 week and 40 week, which approximate the 'classic' 50 and 200 day moving averages. You can see how the momentum indicators have recently been at the highest levels in 5 years. Now the price is consolidating at its 10 week (50 day) moving average while the momentum corrects downward. All very good imo. Would like to find a longer term monthly chart though.

5 year weekly spot COPPER

Dogmatix · Apr 3, 2017

JulieW said:

p.s.

consistently throughout the decades and across the entire globe, one can very effectively see precisely where we all as a whole, and any particular country is heading economically, simply by watching the price and what they are currently doing with copper.
Click to expand...

Could you please elaborate?

finicky · Jul 27, 2017

Twitter
Marin Katusa @MarinKatusa Jul 26
Dr. Copper is having a nice breakout through 2 year highs. For chartists... a multi-year H&S bottom appears to be forming.

Log in or Sign up

Pieces of the jigsaw puzzle thread

JulieW Well-Known Member Silver Stacker

JulieW Well-Known Member Silver Stacker

sammysilver Well-Known Member Silver Stacker

serial Well-Known Member Silver Stacker

JulieW Well-Known Member Silver Stacker

finicky Well-Known Member Silver Stacker

Dogmatix Active Member

finicky Well-Known Member Silver Stacker

Share This Page

Log in or Sign up

Pieces of the jigsaw puzzle thread

JulieW Well-Known Member Silver Stacker

JulieW Well-Known Member Silver Stacker

sammysilver Well-Known Member Silver Stacker

serial Well-Known Member Silver Stacker

JulieW Well-Known Member Silver Stacker

finicky Well-Known Member Silver Stacker

Dogmatix Active Member

finicky Well-Known Member Silver Stacker

Share This Page

Useful Searches