What Do Plummeting Copper Prices Mean for Our Global Economic Future?

What do plummeting copper prices mean for our global economic future? Copper prices have always been closely tracked by financial and economic analysts because of the belief that copper prices can serve as a weathervane for deteriorating or strengthening global economic conditions. Thus, copper has been dubbed Dr. Copper for its past prognostic capabilities. The biggest reason for this belief is due to copper’s multitude of industrial uses in motor parts, industrial machinery, piping, wiring, as a key ingredient in metal alloys, in electronics, and even in many military weapons and applications. In fact, Dutch bank ABN Amro tried to quantify this relationship and reported in a 2014 study that the price of copper was highly correlated to world trade, regional GDP growth in China, the United States and most European nations, and also many commodities, specifically oil and gold.

So, let’s take a look at the state of the continuous copper price chart at the current moment.

If we look at the above chart, we can clearly observe plummeting copper prices from a high of about $4.89/lb on 10 May to its current price of $4.12/lb, a significant 15.75% fall in price. Of course, much of this plummeting copper price has been due to the hysterical lockdowns reimplemented this past quarter that crushed the hope of global reopenings during Q1 in Pacific Rim nations and Asian nations vital to overall global economic health, in Australia, China, South Korea, New Zealand and Japan. Of course, if  you listened to my podcast titled, “Why the Lockdowns Will NOT End Until 2023 (At the Earliest)”, then none of the recent developments in copper’s recent pullback in price should come as a surprise

I believe that the support zone I’ve drawn above for copper prices will hold and that copper prices will soon reverse this three-and-a-half month price dump and resume climbing higher again. However, the reversal and resumption in higher copper prices will not be due to copper’s prognostic abilities about global economic health conditions, but rather a symptom of Central Bankers’ destruction of global fiat currencies’ purchasing power that has manifested in an across the board price rise in commodity prices, as I’ve written about here.

There is little doubt we are witnessing an oligarchical deliberate destruction of global economies as a wealth preservation strategy for themselves, using the cover of covid inspired lockdowns (if you don’t understand this comment, then please search for my follow the money trail podcasts). One of the primary beneficiaries of this deliberate economic destruction will be commodity prices, but it certainly will not be for the usual reasons as we enter the next stage of this dangerous economic destruction game.

There is also another metal that I’ve identified that should benefit, as well as a mining stock linked to this metal that has a real chance, in my opinion, to really soar over the next twelve months. If you would like to discover the identify of this mining stock, please just become a member of the skwealthacademy patron community here to receive loads of premium valuable financial analysis every single week. I will be releasing the name of this mining stock to my Benefactor level patrons at some point in the next one to two weeks.  The last two stocks I discussed as a buying opportunity just a month ago have soared by 33.4% and a more modest 6.6% respectively, with a lot more blue sky ahead in my opinion.

Please note that all skwealthacademy articles are always published first at the skwealthacademy news site. Please visit my news site to download my eBook, Can Cryptocurrencies Save the World?, free for a limited time, and to sign up for my free weekly newsletter. As I’m no longer posting any video content on YouTube, please sign up for a free membership here to continue to view and read my free content, or for a premium membership to gain access to premium content. For the most comprehensive premium financial analysis, including more detailed analysis about this article’s topic than provided above, consider joining my patreon platform at the Benefactor Level. Finally, after 16 months of covid travel lockdown, away from home during this entire time, I hope to be a free man again next month. If so, then I will be launching my 10-year blood, sweat and tears project, skwealthacademy, indefinitely delayed after a planned March 2020 launch. Please click here to download a just revised, updated skwealthacademy factsheet to learn more about my 22-course curriculum and read about why my Academy will radically alter the way we view education forever. If you would like to help with the launch, for which added bonuses will come your way, please visit my gofundme launch campaign here.

J. Kim

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top