Why are base metal prices getting just destroyed?

[merchoarder]

Perhaps this is obvious to you sages so please do enlighten me. I can't be the only one a little confused. I kept waiting to see a post addressing this but haven't so here it is. My best guess is copper, nickel and zinc are considered more valuable in growing economies? Building houses, cars, infrastructure etc.? So in a clusterpoo like now they decline? In a booming economy they flourish? Is there a point where people realize the inherent value of metals such as copper and nickel as money? I suppose the poo REALLY has to hit the fan before this happens as silver barely gets any love now and its, well, its SILVER. Just a little confused as to why they are tanking so badly. Please educate me. Thanks all.

[Lemon Thrower]

base metals are tied to the level of economic output and are sensitive to changes in that level. yesterday it became clear the worldwide depression is deepening. as US and Europe become poorer, china needs less copper, steel, etc.

base metals are not money the way gold and silver are.

[reddirtcoins]

One thing I find weird.. is look at copper prices compaired to soybeans... really weird, you can almost call a copper fall based on soybeans.. lol

[68Camaro]

Base metals are a long-term play, and high leverage. Copper is still 2.5x face. Still a good play. It could go down further - if economy slows, copper falls.

[willy13]

While copper is not money in the way that people think about gold, the cent is indeed backed by the value of copper. While the paper dollar is backed ONLY by our government. So thats why I like to think of these cents as armageddon coins....

[Mossy]

One thing I find weird.. is look at copper prices compaired to soybeans... really weird, you can almost call a copper fall based on soybeans.. lol

That sounds about right. People can do without copper a lot better than they can do without food.

[AGgressive Metal]

Oil and silver took hits too. When stocks are tumbling, the big players are selling everything except gold and treasuries in order to get liquidity. If you are a hedge fund that is up 20% in copper/nickel/oil/etc, and your stocks fall 5%, you are going to sell the other stuff to cover those loses and keep your monthly income sheet looking decent.

[slow to learn]

IMHO copper is a very valuable metal because of its versatility, it was one of the most versatal metel even before christ. There were hugh copper mines that have been discovered in the bible days! Silver and gold will be so exspencive that copper will become very popular and valueable! So hoared away my friends!

[dpwozney]

If the long-term equilibrium market value, for the intrinsic metal content of 1946-2011 U.S. Mint nickels, is the same as face value, then the price of copper and nickel would have to decline by about 17.3% from right now, relative to the stated value of “Federal” Reserve notes.

The current intrinsic metal value of these nickels is “$0.0586639” or 117.32% of face value, according to the “United States Circulating Coinage Intrinsic Value Table” at Coinflation.com.

[Sheikh_yer_Bu'Tay]

IMHO all industrial commodities will take a hit during this panic. Not to worry, the world will keep turning and people will still need metals for their everday lives. The price will trend back up with time. Hang tuff.

[Crescendo]

As long as people continue to make babies, there will be more and more people to eat, buy homes, drink, be merry, buy transportation, and all sorts of fun little gizmos that require copper. Until there is, at minimum, a mass pandemic of people shutting down their cable television, I'm not worried in the slightest about the economy. People in the "richer" countries still pay premiums for services completely unnecessary. So stock market falling or not, things aren't that bad. Yet.

[dpwozney]

If the long-term equilibrium market value, for the intrinsic metal content of 1946-2011 U.S. Mint nickels, is the same as face value, then the price of copper and nickel would have to decline by about 17.3% from right now, relative to the stated value of “Federal” Reserve notes.

The long-term equilibrium market value would depend upon the average percentage of face value that people, on average, would choose to no longer save or spend nickels.

For example, people, on average, might choose to no longer save nickels, but rather spend nickels, when the market value, for the intrinsic metal content of 1946-2011 U.S. Mint nickels, falls below face value. If this is the case, then the price of copper and nickel would have to decline by about 6.61% from right now, relative to the stated value of “Federal” Reserve notes.

The current intrinsic metal value of these nickels is “$0.0533067” or 106.61% of face value, according to the “United States Circulating Coinage Intrinsic Value Table” at Coinflation.com.

[reddirtcoins]

blood bath ...

http://money.cnn.com/2011/09/22/markets ... /index.htm

[iluc]

Copper Pennies, at least, enjoy a huge "margin of safety" in the sense that something worse than 2008 would have to grip us before their melt value fell below face. In the meantime, the cents themselves would be gaining immense purchasing power relative to other assets that were were falling by 50% or more. And the value relative to gold relative to the paper/digital currency supply will only have increased because the policymakers will surely respond with more stimulus than ever. These coins (and, Nickels, too) are interesting in that their investment properties are so unusual: no downside, some potential opportunity cost, and quite a bit of upside if/when they eventually change hands for metal value. Just watch this situation with interest, not fright: you're making net gains as other assets cheapen.

[Coppercrazy]

and hopefully we will all be able to pull serious amounts of copper longer because of the dip.bring it on! Im a hand sorter,so i need more time!

[crazypennyguy]

Copper Pennies, at least, enjoy a huge "margin of safety" in the sense that something worse than 2008 would have to grip us before their melt value fell below face. In the meantime, the cents themselves would be gaining immense purchasing power relative to other assets that were were falling by 50% or more. And the value relative to gold relative to the paper/digital currency supply will only have increased because the policymakers will surely respond with more stimulus than ever. These coins (and, Nickels, too) are interesting in that their investment properties are so unusual: no downside, some potential opportunity cost, and quite a bit of upside if/when they eventually change hands for metal value. Just watch this situation with interest, not fright: you're making net gains as other assets cheapen.

Copper hit the face point briefly in '08, but it didn't last long. And, of course, it bounced back. Would have been a great time to get in.