Friday, May 14, 2010

Alcoa (NYSE:AA) Down As Precious Metals Plunge

Alcoa (NYSE:AA) has dropped again, as precious metals are taking a beating today, with copper, zinc and aluminum all falling on the London Metal Exchange.

The realization that the European sovereign debt crisis will crush the euro because of the misguided decision to provide bailout money of almost $1 trillion to the fiscally irresponsible, socialist governments.

Alcoa has been struggling to break out, standing at a share price that has been level since August 2009.

The latest news that several aluminum ETFs will spur the aluminum industry will help Alcoa in the long term, as some of them are scheduled to launch in the latter part of the year.

For now though, the fall of the euro will dominate the economic landscape, along with the inflation concerns in China, all of which could put a damper on demand for aluminum and other precious metals.

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