Is copper the new gold? Nope.(Read article summary)
If the dollar does actually rally, copper will feel the pain, along with gold and silver
Nick Ansell / Reuters / File
Is copper the "new gold"? Nope!
I had a blast on CNBC today with Larry and Mandy debating that question. I'm not sure what the other guy's point was but there are a few points I tried to make:
1. Copper and gold have nothing to do with each other save the fact they are denominated in dollars.
2. Copper is mainly a play on building in China, it has very little to do with an earnings report from Ford.
3. If the dollar rallies, even temporarily, there is no shot that only "gold and silver bugs" will feel the pain. Copper's coming down too.
4. There are much better ways to play growth than buying copper outright. Like a million better ways.
I got a little feisty today, watch what happens after I get cut off by Matthew.
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