Continuing with Chris and Rick asking the question, “What is copper telling us?”
Click download link to listen on this device: Download Show
Pretty logical argument CFS
Investopedia already has a Trumpflation categorization.
Thanks Steele
OFF TOPIC:
The latest Ron Paul:
https://www.youtube.com/watch?v=BMeThFOti7Y
Lots of copper used to go into housing (residential). Not so much today in the Boise region since plastic has replaced it. Housing is going nuts. Can’t build them fast enough and prices are 10% above a year ago. Lots of commercial building also (hotels, etc.) and copper is a component. So my question: Where is all the copper going to be used at these prices?
Thanks Silverdollar, I did not realize that Boise real estate was also going gangbusters!
Silverdollar, plastic has only replaced plumbing pipes but that is nothing new, electrical needs copper to transmit energy in any home, but copper’s futures are not in the home industry, copper will be very big in the windings for electrical motors to run the new generation of automobiles. It’s too bad many people never look beyond their own needs. DT
The Greatest Prize In All History – (Again)
by @Gianni on February 12, 2017 – [the last passage really sums it up]
“The average electric vehicle has 100 kilograms of #copper. When a 200 MW wind park is constructed, it requires on average 5 tonnes of copper per MW, whereas conventional power generation – #thermalcoal, #naturalgas, #nuclear – requires 1 tonne per MW. The average American household has ~400 pounds of copper – that has remained unusually static for decades. So what happens in the house where Musk did his #solar roof demonstration. The exact maths have yet to be completed, yet a pencil and paper are not essential for a basic understanding. Between the home, solar roof, #batteries and one #EV, there would easily be in excess of 1,000 pounds of copper in an energy self-sufficient dwelling. The potential for: #copper, #lithium, #cobalt, #nickel, and others, is mind boggling.”
https://www.ceo.ca/@gianni/the-greatest-prize-in-all-history-again
Wolfster posted this on the weekend show, but it is very significant as it relates to the copper story, and what will be an increase in M&A activity:
_________________________________________________________________________
(RIO) Rio Told to Start Buying #Copper Mines Rather Than Build Them
February 12, 2016 – by Thomas Biesheuvel #takeover #takeout #merger
“Rio Tinto Group should focus on buying floundering rivals to secure copper mines instead of building new ones, according to Sanford C. Bernstein Ltd.”
“The decision should be a no-brainer,” Paul Gait, an analyst at Bernstein in London, said in a note Friday. “Building a new ton of supply costs significantly more than buying an existing one.”
Avnel Reports 11.7 g/t Au over 16 m in the first results of its 2016 Drilling Programme at Kalanako
(Marketwired – Feb. 13, 2017)
Significant intervals (>25g/t.m) from the South-East zone (inside the 2015 resources pit shells):
– KO-SOM-RC205 4.1 g/t Au over 32 m (EOH)
Including 40.8 g/t Au over 2 m
– KO-SOM-RC210 2.4 g/t Au over 19 m
Including 10.7 g/t Au over 1 m
– KO-SOM-RC211 1.1 g/t Au over 28 m
– KO-SOM-RC212 2.3 g/t Au over 24 m
Significant intervals (>25g/t.m) from the South-East zone (outside the 2015 resources pit shells):
– KO-SOM-RC216 11.7 g/t Au over 16 m
Including 166 g/t Au over 1 m
– KO-SOM-RC217 18.6 g/t Au over 2 m and 7.3 g/t Au over 20 m
Including 29.9 g/t Au over 3 m and 5.6 g/t Au over 6 m Including 27.1 g/t Au over 1 m
– KO-SOM-RC224 4.7 g/t Au over 8 m
Including 27.9 g/t Au over 1 m
You actually had me thinking about copper over the weekend, Excelsior. Thanks
Yes, Copper has been on quite a tear, and rightfully so due to global electrification.
What is about to get interesting is that all indicators are pointing to some real M&A activity in the copper space where the larger companies scoop up the smaller mid-tiers and Jrs. It’s going to get very interesting indeed.
Ex, take it from me, the copper windings needed in motors for electrical cars is huge, lithium, cobalt, manganese, and lead are secondary. DT
Point taken DT. We’re gonna need a lot of copper in the developing world.
Hard not to think of copper when it comes to excelsior. 😉
Nice. Excelsior Mining was up a few more percent again today….
Inflation:
https://www.fidelity.com/news/article/top-news/201702131102RTRSNEWSCOMBINED_KBN15S1W1_1
Here comes a .25% interest rise?
The first and last for the year?
DUBAI, Feb 13 (Reuters) – Tesla Inc ( TSLA )
Loading…
Loading…
has started selling its luxury electric cars in Dubai, marking its first foray into the Middle East.
Sales of luxury cars in the Gulf states are among the highest in the world per capita, although some brands have suffered as lower oil prices have dampened consumer demand.
California-based Tesla is accepting online orders from customers in the United Arab Emirates, a pop-up store in the Dubai Mall and a Tesla service centre being built on Dubai’s Sheikh Zayed Road, which is due to open in July.
Founder Elon Musk said on Monday that Tesla will open a store and service centre in Abu Dhabi in 2018 and plans to expand to Bahrain, Oman and Saudi Arabia.
The only place in the world where a taxi, if it isn’t Mercedes, it’s a Beemer.
VALE up almost 10%
Will President Trump ( SKWEEZ ) the hand of ( Justiny Trudeau )
Copper:
http://www.finviz.com/futures_charts.ashx?p=d1&t=HG
We are likely to have inflation for THREE reasons:
Any form of tariff or import tax, which has been discussed by Trump and his minions, is likely to lead to Price increases leading to inflation.
The only way to get out of our debt bomb, which is ticking away, is to inflate away the significance of the debt.
If/when price inflation starts, the Fed has NO WAY TO CONTROL IT.
It cannot raise interest rates without exploding the debt bomb.