Thursday, October 02, 2008

Copper's Down. Not Good



That's the 90-day picture.

Copper is often called the "old guys' economic indicator"--because old guys understand that copper is in EVERYTHING that's manufactured. When copper's down, the economy is heading south.

All this does is confirm yesterday's PMI reading of 43.

HT: MetalPrices.com

4 comments:

Anonymous said...

On the upside, this might mean that people will stop striping the wire out of anything electric for a few months.

Dan said...

I agree with anonymous, I think it i a good thing. Cooper wire theft is terrible out here in Vegas. I hope it goes down evenfurther.

St. Jimbob of the Apokalypse said...

You'd think with foreign demand and the weak dollar, this would remain higher. What's putting the downward pressure on copper? Weak housing starts? Declining durable goods purchases?

Dad29 said...

Demand has dropped like a rock.

(I should condition that with the observation that copper was extraordinarily high a year ago...)

When I say that copper is a component of every manufactured item, I mean that almost literally. It IS part of brass--but also is contained in cars, appliances, houses, machinery, ....you name it.