Let’s face it; the effect of copper surges into overbought as silver erases yearly losses, February price to close at a new all-time high, and more is good news for investors who are looking for a safe haven against the ups and downs of stock markets. When you can double or triple your money overnight with a simple addition of one element to your portfolio, you should consider it the next best thing to buying a lottery ticket.
Coking Coal – An All-Time High? And What Does It Mean For Stocks?
Market watchers and strategists have been talking about the possibility of an “equity shock” in the near future, which may lead to some sort of equity (stock) turmoil. If this happens, the re-emergence of previous stock market highs will most likely mean that stock markets will open higher than their previous lows.
This means that there’s at least one element that could cause the price of copper to rise by several points in a matter of minutes. This is a very bullish development for market watchers who are counting on those strong fundamentals to continue to drive the price of the metal higher and make a comeback before long. That can’t be easy for the large corporations that own the bulk of the stocks, but it is certainly easier for the short-term speculators who have driven the prices higher.
Copper Surges Into Overbought as Silver Erases Monthly Volume Losses – Two things are occurring simultaneously in copper: While the underlying metal continues to decline in price, it also steadily reduces its monthly volume loss on its spot market (or underlying market) with the advent of price increases to recharge. However, one thing that is beginning to happen is the market is transitioning from a monthly, volume-driven area of trading to a weekly trading area that is gaining momentum faster than ever before.
For years, copper was projected to continue to lose ground in its price compared to gold, silver, and platinum, mainly due to the increasing number of mines that are active worldwide; however, with the market growing to an incredible size and influence, the fundamentals of the mineral are changing. At the same time, the supply of the metal is expanding as new mines are being discovered. The question is, where will it go next?
It is important to remember that silver’s recent slide (via news reports), has done nothing but strengthen the credentials of blue chip stocks, stocks that have a history of price stability. It is also interesting to note that during the recent record low of silver, the company index declined only by one point, making it the only share of any type of metal to decline during the past two weeks.
All of these things combine, which is the hallmark of a long-term bull market, may lead to the same situation as the long-term market support of steel prices, and many other commodities, across the board. While a bear market is always welcome, traders and speculators know that they can capitalize on copper’s (and other metals) re-emergence during this long-term market uptrend.
Copper Surges Into Overbought as Silver Erases Yearly Losses – Market watchers, investors, and strategists can profit from the potential for stock market bubbles. In this case, it is both the length of time that a market has been trading and the size of the market that will determine if a bubble can occur. A bubble occurs when there is a substantial amount of money flowing into a particular market with no expectation of a sustained upswing.
Thus, during the long-term demand for copper, as well as demand for other metals, the market could be a gold mine, but with only a very small share of the overall market. As the prices of most commodities continue to remain near or around the bottom of the current price range, we could see many individuals and investors placing large bets that the current downward slide will reverse soon.
Supply and Demand – Even as the price per ounce of copper continues to grow, this is part of a trend that has been continuing for many years. And, the supply has always met the demand of the market for any commodity that has ever existed in the history of mankind. Technology and mankind has been running out of metals for eons, so as the market keeps growing, the industry grows stronger, the demand keeps increasing, just as supply does.