As one of the main indicators of the global economy, and due to the fact that the company my business is into electrical drives and systems, I follow the price of copper.
It is a wonderful material to work with.
Copper is a commodity, used in all electrical devices an systems.
Looking from the days that the tariff wars have been started, we se the price of copper dropping. The market feels and thinks that these tariff wars have a huge impact in the global trade, which explains the drop of the copper price from around $ 3.31 in May of this year to a level of $ 2.62 as per today.
With a slowing down economy, the demand for electrical devices and systems will decrease, so is the price of copper. However, if we look at the global stock markets, we see someting else. Economy should be booming. So why is copper not rising to historic heights.
Answer: the stockmarkets are not showing the real economy! It is caused by other mechanisms like regulated interest rates and an enormous artificial money flow into the systems.
But we all knew that!
Over the last week we noticed some recuperation, but the week ended on the same level as a week ago. Let’s see how this will play out next week!
Enjoy!