Copper

This metal has been mined for thousands of years. Copper has a very high thermal and electrical conductivity. Pure copper is soft and has a reddish-orange color. Most copper is mined from large, open-pit mines. Chile is the top mine producer of the metal, followed by the U.S. Copper is used in electrical wires, plumbing, roofing, and various industrial uses in machines. In many instances, copper is used in place of aluminum because it is a better electrical conductor. Since it is waterproof, it has been used as roofing material. The green color of copper occurs when it is oxidized over a long period of time.

Low Oil and Copper Prices Tell Us Stock Market in Trouble

By Wednesday, November 12, 2014

Dangers of Low Oil and Copper PricesTo see where the global economy is headed, I follow the prices of oil and copper. The prices of these commodities tell us about demand in the global economy. If the prices of oil and copper are rising, it means there’s prosperity. If the opposite occurs, it means industry (factories) is not busy and that a global economic slowdown is no… Read More

Significant Divergence Between Copper Prices and Stock Market Not to Be Ignored

By Wednesday, April 2, 2014

Two Leading Indicators Warn of a Stock Market TopIn the midst of all the optimism we see towards key stock indices these days, there are two leading indicators that are flashing warning signals. They say, “Be careful, and don’t get caught up in the euphoria.”

Let’s start with the amount of money investors are borrowing to buy stocks…

Margin debt, the amount of money borrow… Read More

What the Breakout in the Gold-to-Copper Ratio Is Telling Us

By Wednesday, March 26, 2014

Copper Flashing a Buy Signal for GoldCopper is considered an industrial metal, used in industries across the board. When copper prices fall, it’s usually an indicator of a slowdown in the global economy. On the contrary, gold bullion isn’t much of an industrial metal; rather, it is used as a hedge against uncertainty in the global economy.

When you look at these two m… Read More

What the Collapse in Copper Prices Means for Investors

By Wednesday, March 19, 2014

Why Are Copper Prices CollapsingAlmost daily, there’s a new piece of information coming out about the Chinese economy that suggests economic conditions there are worsening. We see China’s manufacturing sector is contracting and there’s a credit crunch in the making.

The Wall Street Journal ran a story last Friday on the state of the Chinese economy and its r… Read More

Why Copper Prices Are Collapsing

By Monday, February 3, 2014

Economic Growth Falls to 2009 LevelCopper prices are collapsing, a sign that manufacturing activity in the global economy is slowing.

The chart below shows copper prices are down more than five percent so far this year. Notice the steep decline in copper prices starting this January.

Copper is a major commodity used as a material ingredient in a wide variety of manufac… Read More