Baltic Dry Index Set to Plunge to New All-Time Record Low

The Baltic Dry Index continues to break down, and is preparing to take out it’s all time low set in early 2009 in the aftermath of the Lehman Brothers/financial collapse.  Making matters worse today, the BDI is collapsing in the midst of what is typically the strongest shipping season of the year.

As the BDI prepares to take out 666 to the downside, how low might the global shipping index be by March 2013?  400? 300?  Hopefully unlike official interest rates, we will at least be able to avoid a negative print.

The 2 year BDI chart vs. gold showing an even greater collapse when priced in real, tangible wealth:

 

And the 10 year BDI/gold chart:

Charts courtesyInvestmentTools.com

 

A breakdown of the BDI to new record setting lows appears imminent.