Copper hits new all time highs
While gold has been grabbing most of the headlines, copper is taking the lead:
Gold bid with Copper rising to record high on tariff threat
Of course, copper didn’t just wake up this morning; it was soaring already and tariffs had nothing to do with it. As Jesse Columbo via Money Metals puts it::
Long time readers are familiar with Financology’s fascination with copper. It’s one of the handful of assets tracked by Synthetic Systems and part of our most sophisticated Model Portfolios. Unlike agricultural and energy commodities, despite their importance, as an elementary commodity the amount in and on the earth is fixed. This makes it less susceptible to noisy and transient supply and demand disturbances.
In this respect, it is like gold. In another, it is an opposite; while gold is the most monetary and least industrial of the big four monetary commodities (copper, gold, silver and platinum), copper is the least monetary and most industrial. For this reason, copper is a better fit as a diversifier in bond-dominant portfolios, while gold is a better fit as a diversifier in stock-dominant portfolios. This is reflected in copper’s very low correlation with bonds and gold’s very low correlation with stocks. Both are ideal for a balanced portfolio.
That both are in all time record territory – as priced in dollars – is a reflection on the weakness of the pricing unit. Though not necessarily at the same parts of the inflation cycle, both are excellent inflation hedges. At this rate, we may soon be pricing both in troy ounces.
Mega’s Dispatch from England:- The Penny drops
The Coalition of the willing has all but crumbed to dust, no one is interested.
No one is Marching on Moscow.
The sheer cost of the Ukraine war is now clear to see. There is ZERO chance of winning it & European tax payers are NOT going to fund any more of this crap, let alone send young people to fight & die for it…….the British wet dream is dead.
Yesterday we had a statement from the Chancellor in which she laid out vague plans to cut some public spending.
The 10 year guilt fell a bit & i thought she bought herself some time. This morning the 10 year was 4.8525 & climbing………….it looks like she been sussed. True Trump 25% tax on cars is Brill news & its had an effect, but looks like the Limey scum are in BIG trouble.
In short the growth has collapsed, yes they can throw a shit load of money at the market & get 0.25% growth……which will be revised down again later. Net Zero is fast becoming a dirty word. The costs & fake economic sense has caught up with it even in its birth place here in Blighty.
Trump has hit the gas petal on the European collapse & its coming fast now….
Mike
Mega’s dispatch from England/2:- The Deal
Sometimes its hard not simply admire people whom perhaps normally not want to.
So it is with the Putin/Trump deal, beautifully simple yet stunning details……a work of craftsmanship.
In a nut shell, Putin will sell the Oil/Gas to Europe that is either from Soviet Ukraine or Russia itself. It will transport it via pipelines that the US will now own. Putin will ship at a discounted price, US will charge just enough below LPG shipped prices to ensure they get the market.
US does NOT have to sell its LPG (thus keeping prices down at home).
US gets to charge in $ for Russian product.
US makes a killing!
The British are so PISSED by this you can taste it!
………..& GOD help anyone who F*ks with those pipelines!
Mike