Fueling the broad commodities collapse, the price of copper is now back to a level seen on February 28, 2006.
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Bloomberg notes that copper is the worst performing non-energy raw material on the Bloomberg Commodity Index (BCOM), which fell today to the lowest since August 2002.
A chart of the Reuters-Jeffries Commodities Index (heavily weighted by oil) shows commodity prices are back a level seen in February 2003.
For all the bashing gold has taken in mainstream media, one might have thought gold would also be back at 2003 prices. But if that were the case, gold would be back below $400 an ounce.
Of course it’s possible to spin that statement two ways.
- Gold is stronger (and less volatile) for a reason
- Gold has a lot more to plunge to catch up
Place your bets.
Here’s mine: Gold is stronger for a reason. Stocks in general are headed for reversal of the last few years. If so, precious metals are poised to rise while the average stock is headed lower.
Mike “Mish” Shedlock