Base Metals Up
Dec 23rd, 2008 | By Doug Casey | Category: Financial NewsIt was a good day for the base metals Monday as copper, aluminum, lead, and zinc all gained, leaving nickel as the sole loser. Copper rose sharply to begin trading, reaching past $1.36/lb., but lost ground throughout the day. The metal ultimately finished at up less than ½ cent at $1.3115/lb.
Nickel, also started sharply up in early trading, but it relinquished its gains, finishing down 4 ½ cents at $4.4339/lb. Zinc rose steadily starting in the pre-dawn hours, finishing close to near its intraday high at $0.5177/lb., gaining 1½ cents on the day. Lead also posted gains Monday, rising steadily throughout trading to finish up 1½ cents, at $0.3948/lb. Aluminum fell slightly to begin the day but quickly recovered to finish just off its intraday high at $0.6839/lb., up over 1¾ cents.
Copper’s gains were a reaction to the Bank of China’s decision to lower interest rates in an effort to help reverse the effects of the global recession. Copper traders saw the move as likely to increase demand for the metal.
“Copper prices are up as China slashes interest rates in an attempt to stimulate growth and spur the country’s slowing economy,” stated Ralph Preston of Heritage West Futures. “It’s obvious, however, that the overall trend is down.”
Kitco’s Jon Nadler agreed that “the next six months could see more of the same tough trading climate that’s marked the past half year, as evidence of a severe global recession mounts.”
“Copper could suffer more losses in the next year.” Nadler continued, however, that “as demand recovers in the second half and as expected production cuts by copper-producing countries reduces output, prices are likely to rebound in late 2009.”
That’s what’s happening … See you Wednesday!
Advertisement
After a decade of work, I’ve perfected a method that can predict the movement of individual stocks or entire markets – down to the penny – days, even years in advance. And it works with stocks, bonds, ETFs, currency…
In fact, I’ve recently led readers to gains of as much as 130%...153%...and 155%. It’s so accurate, that both a European bank and a foreign government have tried to steal it from me.
Click to find out what makes this the most powerful financial indicator on earth… and how you can use it to your full advantage.
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.