Copper hoarding

**Mick** · 12-30-2010, 02:03 PM

LME set another record today for copper at $4.388. Yes, we can only hope and anything can happen to bring prices down. But I'm banking on one factor - there will be more and more construction worldwide. That, and an increasing demand for consumer goods such as cars and household appliances in Brazil, Russia, India and China (the BRIC countries) will strain the existing copper supplies. I think you're going to see more consumption in the US, also. Generally, people are tired of saving and doing without. We saw that over Christmas. The people who found jobs and those who kept their jobs are breathing again.

**TheMetalizer** · 12-30-2010, 10:34 PM

Originally Posted by Mick

LME set another record today for copper at $4.388. Yes, we can only hope and anything can happen to bring prices down. But I'm banking on one factor - there will be more and more construction worldwide. That, and an increasing demand for consumer goods such as cars and household appliances in Brazil, Russia, India and China (the BRIC countries) will strain the existing copper supplies. I think you're going to see more consumption in the US, also. Generally, people are tired of saving and doing without. We saw that over Christmas. The people who found jobs and those who kept their jobs are breathing again.

Agreed! You also need to consider how the US dollar is weakening, and that may make the price of metals go up simply because the dollar buys less!

All things considered, I can only hope the American innovation engine will start up again soon. I see a very "green" future in store for the US, because the price of petroleum is going up by the second. Hopefully more money will be made in recycling, as we already have a leg up on investors!