It looks like you're using an Ad Blocker.

Please white-list or disable AboveTopSecret.com in your ad-blocking tool.

Thank you.

 

Some features of ATS will be disabled while you continue to use an ad-blocker.

 

Metal prices fall further than during Great Depression

page: 1
1

log in

join
share:

posted on Dec, 3 2008 @ 11:51 AM
link   

Metal prices fall further than during Great Depression


www.telegraph .co.uk

The price of key industrial metals has fallen further over the last four months than occurred during the worst years of Great Depression between 1929 and 1933, according to research by Barclays Capital.
(visit the link for the full news article)



posted on Dec, 3 2008 @ 11:51 AM
link   
this means things will get much worse. "How?" you ask, well the reduction in price means that less is being sold, which in turn means less production of goods made using those metals, meaning less products sold, and so on.


Kevin Norrish, the bank's commodities strategist, said the average fall in the price of copper, lead, and zinc has been roughly 60pc since the peak in July this year. All three metals were traded on the London Metal Exchange in the inter-war years so it is possible to make a comparison.

Prices for the three metals fell 40pc from their highs in 1929 before touching bottom in 1933, with the bulk of the fall in 1930 as the slump spread worldwide. "Lead and zinc have already lost more than they did in the 1930s," he said.

Copper was hit hardest during the Depression, despite the electrification drive in the US and the Soviet Union, falling 70pc at one stage before creeping back in the mid-1930s. The reason was an 85pc fall in US construction, then the biggest user of the metal.


The crash is coming. There can be no doubt. The politicians are trying simply trying to delay the inevitable and keep the public blind to this fact.

www.telegraph .co.uk
(visit the link for the full news article)



posted on Dec, 3 2008 @ 12:29 PM
link   
i think it just means that the bubble had been inflated beyond what was possible with the volume of money at that time.

in the case of oil, it's profitable at $20 or so, selling it at 150 is obscence and should not last (and did not), because as the economists like to put it, it's suboptimal allocation of resources. virtual money is the culprit and no amount of tinkering will save that system, fiat money's failure record is 100% and no matter whether it's boom or bust, it is this system which drives people into making the wrong decisions while feeling good about it.

it skews perception and people go insane without ever noticing.



posted on Dec, 3 2008 @ 12:50 PM
link   
I have to agree this is bad news. It tells me a couple of things. Building starts are go to be drastically cut and the material will become much harder to find/buy in the not too distant future.

Prices this low are great while the inventory is in place to fill demand. Keep the prices this low, then you have problems. You have relative high wage workers mining the material or making the product with low prices. It just doesn't work that way, people will have to take a pay cut or just be unemployed. Then you will have shortages from not enough production of material.




top topics
 
1

log in

join