COMMODITY CORNER
Copper
The most recent Gold & Silver craze is well underway over the past year or two, with skyrocketing inflation, the sinking value of the U.S. dollar, and the threat of digital assets potentially replacing cash. The Gold Bugs have been out in full force, as history says that investors flee to gold during unfavorable economic times, and a shrinking currency.
A much lesser known and discussed metal – Copper – is also very important in the global economy. Copper, which has very high usage in the industrial industry had been on the rise earlier this year, as the dollar has been sinking in value due mostly to inflation and higher interest rates. However, with underlying economic challenges, this metal has seen a severe drop in price over the past few months, as the supply and demand condition has changed, at least for now. There are several potential uses for copper, including electronics, appliances, power generation, homebuilding, and vehicle manufacturing, most or all of which have suffered less demand as of late, and would experience further reduction in a recession. Eventually that will turn around, and even the hint of rate cuts or improving economic conditions would spur a rally.
As noted in Chapter 1 of our publication, When to Buy and When to Sell: Combining Easy Indicators, Charts, and Financial Astrology (available on Amazon), precious metals spot prices can be manipulated in the global market, and experts in the field have recently indicated that many of these assets are greatly undervalued, and are being price controlled by authorities around the world who are purchasing large quantities to back their new currencies.
But the questions remain – What are the actual uses of copper, gold, silver, etc…? Are they actual currency? Are they only “stores-of-value” to later be exchanged back for the currency of choice? Will they be de-valued by governments as they have in the past? Although no one knows for sure, the “store-of-value” concept seems to be the strongest belief. One thing for sure, some precious metals exposure would certainly diversify one’s portfolio, whether in the physical metal, a commodity tracking ETF (which would be valued in U.S. dollars), or in storage through an IRA (many metals companies offer this option). One ETF that tracks copper is COPP, which is tradable on the U.S. market.
In Astrology, the planet Venus “rules” copper. Copper thrived in Taurus season (which is ruled by Venus as well), but has cooled off significantly so far in the beginning weeks of Gemini season, often met with volatility (ruled by Mercury). Combined with the constant fears of a coming recession, expect the volatility to continue. Certain planetary transits and aspects can signify strong and weak periods for copper, as well as other precious metals in the markets. Combining historical performance of these conditions, gauges, and aspects can assist in your decision making regarding the best time to purchase, sell, or trade these assets.
As we approach “Cancer” season (see Sign Language – Cancer blog, dated 6-8-24), we will be entering another period of commodity focus, as the Moon (which rules silver and Cancer), and the Sun (which rules gold and the upcoming sign of Leo) have prominent related energies. Although the constant perception changes of the Federal Reserve’s likelihood of an interest rate cut looms over the uncertain markets, the commodities sector should be active. Many experts believe that any significant dip in price in metals is a buying opportunity. Remember to use share size discipline with any purchases, as always.
On this website, and in future blogs, we will continue to monitor and discuss these possibilities.
