Where are Copper Prices Heading?

Copper Prices

The interference by the government in the economy has made it more difficult to know which direction copper prices will go, as the articial propping up of certain industries can also give a temporary bump up in prices.

Copper is of course one of the best indicators of the economy, as it signals whether people are buying or hoarding their cash.

Copper prices exploded upwards in 2009, but have flattened out since around August at about $2.80 to $3.00 a pound. During the summer months copper price per pound fell to around $2.20.

There is no doubt there will be a big move in copper prices sometime soon, but the question is whether that move will be up or down.

I think we could use the $2.20 a pound lows in the summer of 2009 as a sign that demand has slackened and people aren't spending. On the other hand, if prices start to rise well above $3.00 a pound, say like $3.20 or more, it would probably be a good indication that inflation is rearing its ugly head and prices will continue to shoot up.

Because we don't know how badly the government will continue to print money, copper prices are a good indicator of how much they're really doing it and how people are responding.

Copper Prices