Gold, Silver, Dow, Treasuries, & US Dollar, WATCH THIS ONE CLOSELY…
The Internet is essentially one giant copper wire.
Copper is the base metal responsible for so much of what we take for granted. As we have mentioned before, such as here, world copper mine production is down this year, showing that not just all those gains were infrastructure “Trump Trade” speculative hype.
Here’s some of the recent data released by the International Copper Study Group’s July 20, 2017 Press Release:
World mine production is estimated to have declined by around 3.5% in the first four months of 2017, with concentrate production declining by around 3% and solvent extraction-electrowinning (SX-EW) declining by around 5%
A 12% decline in production in Chile, the world’s biggest copper mine producing country, negatively affected by the strike at Escondida mine and lower output from Codelco mines.
A decline in Canada and Mongolia concentrates production of 19% and 22%, respectively, mainly due to lower grades in planned mining sequencing.
A 14% decline in Indonesian concentrate production as output was constrained by a temporary ban on concentrate exports that started in January and ended in April.
On the daily chart, copper just put in a a fresh new high for the year:
Not only did copper put in a fresh high today, that candle is very bullish. All year we have seen small, healthy pullbacks after such massive moves in copper, or we have seen consolidation. If the trend is to remain in place, copper can put in a close above $3.00 in short order.
A closer inspection shows that silver has some catching up to do to copper. Notice the blatant smashing from earlier in the moth:
Silver is not just money, but also heavily used in industry. It is also a bi-product of copper mining. When the price of copper goes up, or down, we can see that silver tracks the moves, albeit subject to the massive paper pounding on the COMEX to which copper is not.
So while the MSM is parsing over what the Fed did and did not say last month, copper just walked out the back door with the prize.