Interesting conclusion they come to in your link, did you agree with this too?
Conclusion
People say to us that copper is “weak”. Frankly we don’t see it. Where were these people when copper was 72 cts a pound back in the late 1990s. They should brush up on their history books.
One has to face the fact that a trader when cornered by a journalist will start to blather. To claim that its “bad news” that some non-existent or scarcely existent copper stocks have been used as collateral over and over again is hogwash. Any product that has been sold (and a defaulted loan is “sold”) many times over and the physical does not exist in quantity to satisfy that loan is not an excuse for the guilty party to “sell” copper as the pundits insist, but is a requirement to cover. Now whether the guilty party ends up on a slab and thus is not able to close his margin calls is another matter.
It would seem Red Kite is of the same persuasion as us that this is a bullish sign for copper, not a bearish one.
AVB Price at posting:
6.6¢ Sentiment: Buy Disclosure: Held
