Another leg higher for copper, another blow to the "deflationists."
Last year, we told you one of the great investment debates of our time is this: "Is the U.S. government's crazed spending going to stoke inflation and higher commodity prices? Or is the consumer so tapped out that he can't buy anything... and is a long slog of deflation on the way?"
For a rough gauge of inflation, we track copper prices. Copper is a major ingredient in nearly everything around you: from computers and cars to power lines and plumbing. In November, copper staged a major upside breakout that pushed the metal over $3 per pound. In December, it broke out again to climb over $3.20 per pound. And just yesterday, the most active copper contract traded for over $3.40. It's an incredible short-term gain for this "in everything" metal.
As we declared last month, "Deflationists, you've lost badly." Governments around the world are handing out stimulus funds and free money to anyone of voting age. That's how you get into office these days... it's how you dilute the value of paper money... and it's how you push the nominal price of "real stuff" like copper to the sky. The flight from junk money into commodities continues...
Last year, we told you one of the great investment debates of our time is this: "Is the U.S. government's crazed spending going to stoke inflation and higher commodity prices? Or is the consumer so tapped out that he can't buy anything... and is a long slog of deflation on the way?"
For a rough gauge of inflation, we track copper prices. Copper is a major ingredient in nearly everything around you: from computers and cars to power lines and plumbing. In November, copper staged a major upside breakout that pushed the metal over $3 per pound. In December, it broke out again to climb over $3.20 per pound. And just yesterday, the most active copper contract traded for over $3.40. It's an incredible short-term gain for this "in everything" metal.
As we declared last month, "Deflationists, you've lost badly." Governments around the world are handing out stimulus funds and free money to anyone of voting age. That's how you get into office these days... it's how you dilute the value of paper money... and it's how you push the nominal price of "real stuff" like copper to the sky. The flight from junk money into commodities continues...
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