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Thread: Copper supply surplus, what this means for silver

  1. #11

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    Quote Originally Posted by and4rik View Post
    Copper pushing down to a one year low today. Close at $4.07. The Fed slowly tightening its balance sheet (several years) could cause commodities to see a drop in price. I am not seeing the crash many are saying is happening now. Mining will continue and prices will adjust accordingly.


    http://www.kitcometals.com/charts/co...cal_large.html
    i think high USD also suppressing commodities prices.
    At current USD/CAD exchange rate, even though Cu price is lower in USD, Cu price in CAD now equates as if 4.23 USD/lb few weeks ago.

  2. #12

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    Commodities taking recession hit, it's a big world.

  3. #13

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    3$ copper coming right up, maybe a shock down to 2$ on an economic bombshell in the next few years?

  4. #14

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    the point is that our western political establishment now urgers everybody to go to " responsible " energy. It is clear that that energy producing outfit has to be manufactured.

    This means a huge demand for industrial metals and other stuff, whilst they have to produce the energy to produce that " other " stuff, and maintain the production capacity of the industries who help to produce the " new" energy producing and energy consuming items.

    The political jetset is obliged to see to it its population doen't suffer " too " much, otherwise they will be democratically voted out, if meanwhile we do not mothball for a while our democractic system - for your good -.

    It means that we will see a huge demand for raw materials and workforce. The social benefits for the twilight profiteers will be challenged and we will see a mediastorm which will push the mindset inn that direction. Sorry bummers, the brave new clean world needs all hands on deck.

    Included in this future package is a stable currency and that can only be done if the possibility to create money ex nihilo is getting more difficult, it means a return to a more stable anchor, which is ... You guess it.

    Golditiki2+++
    Last edited by golditiki2; 07-14-2022 at 03:01 AM.

  5. #15

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    I was surprised to see copper hit almost 4 today, the other day I thought wow back up to 3.8x something then boom, up 50 cents in a week. Silver is up about 14% for the month, which makes it about even for YOY

    Here is a little miner update on our happy little metals.

    https://www.mining.com/web/silver-jo...supply-crunch/

  6. #16
    Join Date
    May 2013
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    I don't know about that article...They called 300,000 ounces 10,000 tons, 300,000 ounces is only about 10 tons...I stopped reading right there.

    Ag guy
    live for today, admit your faults, do the right thing (even if you don't want to) & trust God!
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  7. #17

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    The gist of the article is that base metals are a contributory factor in the obviousness or inability to meet any carbon neutrality goals, and that mining investment needs to be over 50% more than has been the last 30 years. Kitco is even quoted in the article, as are so many other very legit sources. You have to take what you want and leave the rest, group think is everywhere.

    I stopped reading after the Indian buying information, but I went back to finish the article later, they say 4.50 is copper price needed for the industry. And, physical demand for silver is at a 7 year high per silver institute, didn't see that coming.

  8. #18

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    comma mistakes are unfortunate, but happen ofters in texts. One should not discart the whole because of one printing mistake. The whole article is IMO very instructive. Of course one should always put a bit salt on thetail of the sparrow my father used to say, but it is far from a dumb article, I think the future problems are gonna be the slowing demand, the currency value problems ( costincreases in nominal currency ) and energy availability problems

    Golditiki2+++

  9. #19

  10. #20

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    Historically speaking, I believe that silver has been a byproduct of lead mining more than copper mining. I would watch the lead volumes more than copper if I wanted to predict an influence on silver pricing. Of course, the inverse can also be true when the price of silver is very high.

    Copper usually marches to the beat of industrial demand, almost exclusively it seems. It is not really a money metal like it was when coins were made from it. More than silver, copper seems to have decoupled from it's previous money value.

    Of course, if you count the value in fiat digits, the numbers get skewed as the fiat supply is toyed with. I know some who track commodity values according to how many suits a given quantity can buy. I know others who track them against wheat bushels. I once knew a guy who used surplus bolt action rifles as his bench mark. Some now seem to be wanting to use oil as the standard basis for valuing everything. There really are many different perspectives from which to look at this.
    “The Federal Reserve is not currently forecasting a recession.”
    Fed Chairman Ben Bernanke, January 2008
    This is no longer posted in the Fed Minutes of January 2008, but still quoted here - https://www.nbcnews.com/id/wbna22592939. The FOMC minutes still quote MR. Reifschneider. as stating the same thing.

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