Is China buying copper?

[Brian4Liberty]

We have a tendency to always think in terms of gold and silver, but is China buying up copper instead (with their US Dollars)? The CEO of Freeport-Mcmoran was on CNBC, and said that copper is the big mover for the past 6 months, with all of it going to China. Sounds like China may be buying up raw materials...

Anyone know an easy way to chart gold vs. copper?

[Zippyjuan]

China has been buying lots of natural resources to fuel their economy.

[Optatron]

We have a tendency to always think in terms of gold and silver, but is China buying up copper instead (with their US Dollars)? The CEO of Freeport-Mcmoran was on CNBC, and said that copper is the big mover for the past 6 months, with all of it going to China. Sounds like China may be buying up raw materials...

Anyone know an easy way to chart gold vs. copper?

other than punching yearly data one by one into your xls? no.

copper is still pretty dirt cheap though.

[tmosley]

Yes, China is buying up useful but heavy commodities that have a long shelf life (copper, steel, etc) far in excess of their current needs. I have seen a lot of speculation that this is in anticipation of A. a dollar collapse and B. a sudden increase in shipping costs. Basically, they are buying up everything they can't make themselves, and using their dollars to do it.

[Brian4Liberty]

Yes, China is buying up useful but heavy commodities that have a long shelf life (copper, steel, etc) far in excess of their current needs. I have seen a lot of speculation that this is in anticipation of A. a dollar collapse and B. a sudden increase in shipping costs. Basically, they are buying up everything they can't make themselves, and using their dollars to do it.

Exactly what I was thinking. They need to turn US dollars into real assets, and they are spreading it out and doing it quietly.

[CitizenPlain]

...

[hugolp]

Yes, China is buying up useful but heavy commodities that have a long shelf life (copper, steel, etc) far in excess of their current needs. I have seen a lot of speculation that this is in anticipation of A. a dollar collapse and B. a sudden increase in shipping costs. Basically, they are buying up everything they can't make themselves, and using their dollars to do it.

I read in a GATA article that a intelligent move from the chinese would be to use their bonds as colateral for loans in dollars from USA banks, and then buy commodities.

If the dollar crashes they get to keep their commodities and other real assets they bought. In the unlikely event that the dollar does not crash, the interest from the bonds get to pay almost all the interest on the loan and the rest can be payed with their dollars or the trade deficit from the USA.

Its a win-win for China. Its survival for the USA.

[tmosley]

I read in a GATA article that a intelligent move from the chinese would be to use their bonds as colateral for loans in dollars from USA banks, and then buy commodities.

If the dollar crashes they get to keep their commodities and other real assets they bought. In the unlikely event that the dollar does not crash, the interest from the bonds get to pay almost all the interest on the loan and the rest can be payed with their dollars or the trade deficit from the USA.

Its a win-win for China. Its survival for the USA.

Not only that, but it increases demand for dollars temporarily. I wonder if this has already happened, given the rise in the dollar index from the low 70's last september to the mid-80's over the past few months.

[TonySutton]

China has been dumping their US dollars on natural resources directly and indirectly (related companies) for the past year.