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Copper is the canary in a bird cage for the other metals - Peter Major, Cadiz
In an interview on Radio 2000 @ 18:00 on Friday, 15 December 2006
[miningmx.com] -- THE weakness in the price of copper could be a prelude to lower prices for other metals, said Peter Major, an analyst for South African stockbroker, Cadiz.
The question was whether metal prices would ride the weakness or if the bull market in commodities was over, Major said. The performance of copper was a good indication of how the prices of other metals would perform.
"The interesting fact is copper is now the lowest it’s been for about six, seven months, and we’ve always said copper is the canary in a bird cage for the other metals," said Major.
"And most of these other metals are continuing to hit all-time highs, but copper has literally been falling for six, seven months. Inventories are at a 2.5 year high," Major said.
"So, there is a bird in the cage and it is starting to make a lot of squealing sound. You’ve got to decide is this poisonous
air we’re encountering, or is it maybe just bad air that we’re going to get through," he said. Major was speaking on the Moneyweb Power Hour, a week nightly radio programme.
The price of copper fell to $6.700/t last week on the back of higher inventories of the metal.
"We’re at a crossroads here and we’re going to see something in the next couple of weeks that are going to indicate where we’re going next year, Major said.
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