The curiosity about copper is that its price appear to trend with crude oil rather than demand. The commodities market was originally the domain of major consumers, like manufactures, who used futures as a hedge against price volatility. More recently their contribution has been dwarfed by the big investment houses, who have repackaged commodities as investment vehicles that ultimately trade on sentiment rather than fundamentals.

It’s suggested that at least 15% of the price is attributable to speculation, which is consistent with our observations. We will be using this space to accumulate observations.


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