According to The Street’s John Nyaradi, copper prices are on the decline! But why is this important to you? When copper prices began rising a few years ago, so did copper related property crime . Nyaradi stated that not only is copper on the decline, but it is really losing steam,”
“Copper has been in a steady downtrend since the beginning of 2014 and is currently trading below both its 50-day moving average and 2.33% below its 200- day moving average.Copper demand is driven, in large part, by emerging market economies, which are undergoing expansive construction and industrialization. More importantly, China’s demand for copper has become extremely significant. Many economists are of the opinion that copper prices are being adversely impacted by weakness in China’s yuan. A weaker yuan discourages Chinese manufacturers from importing copper (as well as other materials) because of the increased expense.”
With this important news, you may wonder how this effects you, the consumer. When copper prices began to rise, we saw a huge increase in copper related property crime. Thieves would take the precious metal and recycle it for cold hard cash. But now, thieves may have to find another way to pay for their habits. With a sharp decline in copper prices, can we expect a decline in copper related crime? We believe so.
See more on copper here: “What do Treasuries and Copper Know that Equities don’t?” -The Street