MUST READ: The World Has Less Than 5 Days Worth Of Copper Inventories

Jon Economy, Market Commentary, Precious Metals, Silver

According to the financial media, the global economy is supposedly rolling over causing a glut of inventories producing a deflation in the prices of many commodities. If this is the case… someone should tell that to King of base metals… Copper.
Something doesn’t seem to be making sense in the copper market as the price continues to decline, so are the level of global copper inventories. You would think the opposite would be the case, but we must remember in the new Financial Paradigm – Paper assets such as Derivatives, Stocks and Bonds are KING, while Gold-Silver and commodities are GARBAGE. Which is why (according to their mentality), financial assets are what we should EAT, while gold-silver and commodities are what we flush down the toilet once we are done digesting and consuming them (put another way – CRAP).
If we look at the chart below, we can see a very interesting trend taking place in global copper inventories. Not only are we are near record lows, we are down to less than five days worth of copper inventories:

This post was published at SRSrocco Report on October 17, 2014.