Loading ...If everything is in reverse, then the decades of artificially cheap metals, via futures markets is ending, for cheap metals AND the end that stupid radicicolous futures market. Where any idiot neighbor or Goldman Sachs, can make, a make believe, “buy” or “sell” (actually a vote) on the price of 10,000 barrels of crude oil. Shorting has historically been the most successful “bet”, so in a major reversal, shorting will evolve to be the WORST bet.
Because of 80% are make believe buyers and make believe sellers, causing crazy volatility in the pricing, crazy up and crazy down, the actual true producers, and the actual true consumers, are FORCED to hedge in the futures market, to avoid losing money when selling, or avoid paying a temporary very high price when buying.
Check the nickel chart on maximum. $10,000 a ton on the low points in 2009 and 2016 $5 a POUND!! The high points, $50,000 a ton in 2007, and $50k a ton recently, in March was only $25 a pound. Today $33,000 a ton or $16.50 a pound is very cheap in my book. Sirloin steak is more, try buying wild caught salmon, probably $35/lb and we EAT that stuff.
Copper was priced $1/lb +or- 50 cents from 1972 until 2004. Somebody needs to tell us why there was zero inflation with Copper for 32 years, 3 decades. If it was NOT priced in the futures market, the price would have climbed like a loaf of bread a cup of coffee or a new car and your property taxes.
So there you have it. The futures markets have functioned like a gov’t price control scheme, since the Dollar Gold backing was removed in 1971, start of job losing globalization and the start of welfare jobs like creating the EPA jobs. My view 9/11 started the end of the old games, and Gold is the end game.
Chart, nickel: Scroll down to click on Nickel, then you can click on Max to see 2004. You can go back and look at Copper, or everything else.
https://markets.businessinsider.com/commodities
P.S. Copper was $1/lb times 20, Copper should be $20/lb. NOT $4.80/lb. Try buying some copper tubing or rod stock at Ace Hardware. Or buy Copper Rounds and see $2/ ounce or $32/lb.