Base Metals Lose Again, Plunge is the Result of Rising Copper Stockpiles
Aug 5th, 2008 | By Doug Casey | Category: Financial News, Gold MarketIt was another terrible day for the base metals Monday as copper, zinc, nickel, aluminum, and lead were all down during the day’s trading. After remaining flat in early trading, copper prices plunged in the pre-dawn hours, falling almost 13 cents, to $3.5065/lb.
Zinc rose slightly in early trading, but soon succumbed to the downward pressure of the day to close at $0.7959/lb., down over 3 cents. Nickel fell badly throughout trading Monday, ultimately ending just off its intraday low, at $8.0603/lb., down 15½ cents. Aluminum also trended down all day, dipping below $1.27/lb. just before noon.
While prices recovered slightly, aluminum still finished the day down 3 cents, at $1.2796/lb. Lead was not immune to the base metals’ woes on the day as it dropped over 5½ cents, to $0.9143/lb.
Copper’s second straight day of sharp declines was largely due to rising stockpiles of the metal and continuing concerns of poor copper demand.
According to the LME, copper stockpiles have risen by 19% in the past month, to the their highest levels in six months.
Copper is just looking ugly,” Matthew Zeman of LaSalle Futures Group remarked. “With the global economic slowdown, and a steady rise in stockpiles, it’s hard to see any reason that copper won’t continue to drop. Prices could fall quite a bit fairly quickly.”
Source: Base Metals Lose Again, Plunge is the Result of Rising Copper Stockpiles
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Doug Casey is a contrarian investor, sought-after public speaker and author of several books. His work "Crisis Investing" held the position of # 1 bestseller on the New York Times list for 26 consecutive weeks. Doug's unusual views on the economy - and just about everything else - have gained a huge following in the investment community, and it certainly helps that his stock recommendations of undervalued junior exploration companies have made his subscribers millions. Now in its 27th year, Doug's monthly newsletter, the International Speculator, is one of the most established and esteemed publications on gold, silver and other natural resource investments. Together with the Casey Energy Speculator, it covers a broad range of carefully selected stocks with the very real potential of double- and triple-digit returns within 12 to 24 months.