| Author |
 Topic  |
|
|
insurrection1517
Penny Collector Member
USA
262 Posts |
 Posted - 01/24/2008 : 17:44:26
|
Hello,
Does the price of copper and our copper cents depend on a strong US economy? I imagine many people on this board recognize that the US economy is on the way down. Will copper prices continue to increase despite the likely recession? Or do you feel that the global economy will remain strong and then drive up copper prices?
What is the long term prediction for the copper market, and other metals in general? Is it way up?
Thanks for your help!
|
Check out my auctions on ebay!: http://shop.ebay.com/lutheranamerican/m.html?_nkw=&_armrs=1&_from=&_ipg=&_trksid=p4340
http://www.mrrebates.com?refid=413556 - 3% cash back on everthing at Ebay - including coins, precious metals, etc. Much better than Ebates.
|
|
|
pencilvanian
1000+ Penny Miser Member
USA
2209 Posts |
Posted - 01/24/2008 : 18:22:04
|
I tend to think along the lines of creeping inflation, though nowadays inflation is stampeding.
Think back to 1981, the last year US pennies were made of copper. Zincs were phased in due to the cost of making pennies out of copper was considered too expensive. (Producing a cent with a melt value of almost a cent plus production costs forced the change for economic reasons.)
Here we are in 2008, the price of copper has not yet declined to the point where a copper cent would be worth less than 1/2 cent. Even with the tough recession of the early 1980's copper was kept out of pennies due to the cost factor.
Also consider that the US isn't the only economic engine of the world. India, China, even South America are becoming the engines of economic growth today, some more so than others. As developing nations become manufacturers their need for copper for electrical wiring or machinery will keep the demand for copper from slumping.
I feel the price of all metals is increasing due to inflation and pressures on supply.
Supplies of metals can not come online quickly, miners can't increase the amount they can extract from the ground without risking accidents. Refiners can't simply decide to smelt more metal, it takes years to get a smelter up and running.
Expect metals prices to increase over the long run. Yes, there will be dips, but those will be buying opportunities, not reasons to bail out of metals. |
 |
|
|
El Dee
Penny Hoarding Member
USA
547 Posts |
Posted - 01/24/2008 : 19:26:11
|
Two things determine the price. Demand for the material - here and abroad, and the value of the US (and Canadian) dollar. If demand is unchanged and supply is constant, the dropping value of the dollar is manifested as a corresponding increase in the price.
If, on the other hand, demand outstrips supply, you'll see a marked jump in the price. If demand evaporates, you'll see the price drop quickly as warehouses and docks pile up with excess inventory.
|
Trust the government? Ask an Indian. |
Edited by - El Dee on 01/24/2008 19:28:02 |
|
|
|
Ardent Listener
Administrator
USA
4841 Posts |
Posted - 01/24/2008 : 20:11:31
|
I heard on the radio today that the U.S. economy is still the #1 economy in the world with China quickly moving up on #2 Germany. The recent international stock markets drop (7.5% one day drop in India alone) was based in large part due to fears of a U.S. recession. So to answer your question; no, the global ecomomy in my opinion would not remain strong dispite a U.S. recession. At least not this time around. That is not to say the global ecomomy is as dependent on the U.S. as they were years ago and china is the #1 user of copper.
Like pencilvanian said, inflation along with increased demand is currently driving up the price of copper and should be a major consideration in the copper market.
|
Realcent.forumco.com disclosure. Please read.
All posts either by the members, moderators, and the administration of http://realcent.forumco.com are for your edification and amusement only. It is not the intent of realcent.forumco.com or its host to provide investment, medical, matrimonial, legal, security or tax advice and nothing posted here should be considered to be so. All rights reserved.
Think positive. |
|
|
|
starwarsgeek171
Penny Hoarding Member
USA
651 Posts |
Posted - 01/25/2008 : 07:29:05
|
| No national/global inflation = no rises in copper prices. We are in a recession. I will buy more PMs with my funny money. The good days will return, so keep hoarding. But, copper is just going to stay in a narrow range for a while. |
Edited by - starwarsgeek171 on 01/25/2008 16:36:52 |
|
|
|
Know Common Cents
Penny Pincher Member
195 Posts |
Posted - 01/25/2008 : 22:13:14
|
| The price of copper may not rise to the moon, but other commodities with no tangible value will fall of the cliff. Think you'll be able to trade a plasma TV for food, gasoline, etc? The public is just now on the fringe of turning off American Idol and giving serious thought to protecting themselves with something of real value. The river of dollars flowing into precious metals and other commodities increases daily as the media tells everyone about the wounded economy. Just wait. We haven't seen anything yet. |
Here in Wisconsin, we have some of the highest property and gasoline taxes in the US. We're squeezed so much, I have to make my daughter wear penny boxes for shoes. At least she has an endless supply. |
|
|
|
starwarsgeek171
Penny Hoarding Member
USA
651 Posts |
Posted - 01/26/2008 : 07:16:39
|
Loved the comment about American Idol, Common Cents. Sad how people can sit back knowing that their country is going to HIAHB. Also, I hope that you're correct regarding the river of dollars! I'm just not sure if Joe American is ready, or even in a financial position to buy gold or even silver yet. Even the central banks are pretty tapped out at this point. Maybe the Chinese and/or Indians (even the Middle East) will pick up the slack, but I doubt it. The global economy is nowhere near in place yet, so we're just the first domino to fall. Demand for everything except consumables, sin-products and gasoline will fall. My work shoes can always be polished-up one more time, and there's nothing like the feeling of driving a car that's paid-off.
I just need to drive to work and eat (heat home in winter)! All other expenses can be curtailed or eliminated. I wish the best to everyone on this board. |
|
|
| |
Topic |
|
|
|
Strong Economy Needed for Copper Price Increase?
Forum Locked
