As materials, mining and metals have capitulated to a slowing growth climate the past 3 years, many commodities and related company shares have drifted back toward their 2009 lows. Copper has been a curious stand out. Though down 28% from its 2011 QE rebound peak, copper prices have suspiciously held above long term support week after week, even as record inventories piled up around the globe.
We have noted several times the past 3 years, that it was almost as if the financial “riggers” knew that copper was a widely followed barometer of economic prospects and so had made a concerted effort to hold the price up as confirmation of rosy global growth forecasts. Now with world trade turning negative with US GDP in Q1 of this year, and news out of China that single cargoes of metal have been re-hypothecated and pledged multiple times over to obtain loans, is the farce finally up?