• 13 hours Is A Global Currency Necessary?
  • 1 day America Has Shed 500,000 Millionaires Since The Coronavirus Lockdown Began
  • 1 day Trump Wants Another $2 Trillion Economic Intervention
  • 2 days The Surprising Businesses Deemed “Essential” During The Coronavirus Lockdown
  • 2 days Priceless Van Gogh "Spring Garden" Painting Stolen
  • 2 days Oil Falls To $20 For First Time In Nearly Two Decades
  • 3 days COVID-19 Could Be The End Of U.S. Coal
  • 3 days How Much Does Your Social Security Number Cost? $4 On The Dark Web
  • 4 days Silver Stocks Have Been Decimated In The Coronavirus Sell-Off
  • 5 days How Blockchain Tech Could Make Mergers And Acquisitions More Efficient
  • 6 days America’s Shortage Of This Metal Keeps Trump Up At Night
  • 6 days Bidet Bonanza: Defying The Toilet Paper Shortage
  • 7 days U.S. Auto Sales Fall By 75%
  • 7 days Violating Quarantine? Big Brother Is Watching
  • 7 days Does Gold Still Have Some Room To Run?
  • 8 days Major Acquisition Gives The World’s First Green Ride-Share Another Edge
  • 8 days U.S. Pushes For Digital Currency For Immediate Stimulus
  • 8 days The Impossible Challenges Created By Growing Population
  • 9 days Gold Skyrockets After Fed Pledges "Unlimited" Cash To Boost Economy
  • 9 days World’s Richest Lose $1 Trillion In Stock Market Rout
How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

Dan Norcini

Dan Norcini

Dan Norcini is a professional off-the-floor commodities trader bringing more than 25 years experience in the markets to provide a trader's insight and commentary on…

Contact Author

  1. Home
  2. Markets
  3. Other

Chinese Medicine Not Impressing Dr Copper

Dr. Copper apparently does not approve of the prescription ordered by the Chinese authorities to stem the slowdown in that nation, namely another 25 basis point interest rate reduction and a lowering of bank reserve requirements.

The red metal cannot sustain any upside action for long before sellers emerge to whack it again.

Copper Daily Chart
Larger Image

This is number one of my THREE BIG C's, Copper, Crude oil and Cotton.

So what exactly are the other two C's telling us?

Crude Oil Daily Chart
Larger Image

Cotton Daily Chart
Larger Image

Here is a look at the overall commodity sector. I have chosen to use Invesco's DB Commodity Index Tracking Fund for charting the sector today ( you can use any one of these funds - I typically use the GSCI) just because it has a lot of liquidity.

DB Commodity Index Tracking Fund Daily Chart
Larger Image

No matter how one slices or dices it, this sector is signaling slowing growth due to a combination of excess supply and lagging demand. Remember, back during the hey-day of the commodity sector, prices soared leading to massive ramp ups in production. That new supply came onto the market at the same time that global growth began slowing. The combination was lethal for prices.

Lastly, at the risk of boring some of my readers, I cannot help but to express bewilderment at the claims that continue to come out of the gold cult in regards to silver being a safe haven. That an otherwise rational person would string the two objects together ( silver/safe haven) in a single breath defies all rational analysis. Notice I am using the word, "rational".

There is nothing the least bit "rational" about those who continue to propagate this myth.

To those who at least make an effort to remain objective and open-minded when it comes to investing or trading, here is a simple long term chart of silver.

Silver Monthly Chart
Larger Image

Can anyone say with a straight face, that this remotely resembles anything that looks like a "safe haven"?

Silver will follow the rest of the broader commodity sector around. There is nothing else that one needs to know. Anything to the contrary is pure propaganda and wishful thinking. Follow it at your own financial peril.

This "safe haven" now has a "13"handle in front of it at the moment. How many more poor victims of this pestilential gold cult ( and silver cult) must be claimed before this lesson is learned?

 

Back to homepage

Leave a comment

Leave a comment