in a nutshell
market vibes
May 21..)
“When Gold platinum argues the cause, eloquence is impotent.” Publilius Syrus
No data releases today. DOEs 10:30.
In the news
The copper deficit narrative is going around again. “Copper Bull Snowdon Sees Biggest Market Deficit in Two Decades,” according to Bloomberg’s commodities crew. If you paste that headline into your browser, you’ll see the same wolf-calling article multiple times going back to the days of pre-COVID.
There is a new wrinkle to the copper narrative, however. Artificial Intelligence will need more electricity than our minds can imagine. When data centers are built, imminently some say, copper will go wildly higher. At any rate, according to many sources, including Kostas Bintas from Trafi, the shortage is already here.
In the Markets
The only thing I can say about copper from the chart of Comex July futures is it looks a lot like silver (next chart): flatlined, boring, and ignored. There are differences, though. China owns the primary exchange where copper is traded and the largest inventory of metal, which has been going down. Unfortunately, inventory levels for all LME metals have a very unreliable correlation with prices.
If you let your eye go back and forth between these two copper and silver charts, you’ll get my point.
Updates on Platinum, gold, stocks and bitcoin straight ahead… and the oil conundrm in the vibe….
