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 Replies: 24 / Views: 3,453 |
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Pillar of the Community
United States
2600 Posts |
Listened to the Diane Reams show on public radio going to work this morning and they had a forum of economists on who were discussing the current economy and the causes of the downturn.
One of the interesting comment that pertain to this thread was on the rush to invest in commodities during the peak of the bubble. To a man, they felt that commodities (metals especially) had been grossly over priced fueled by an unsustainable demand caused by a hyper hot consumption rate. This consumption was fueled by the American consumer who leveraged himself into bankruptcy. The U.S. has 4.5% of the world's population and consumed 10 trillion dollars of product in 2006. Compare this to China and India with 40% of the world population and who consumed 2 trillion dollars of product in the same period. The U.S. consumer drives the world economy and until they come back to the market, demand for industrial materials will continue to drop or be flat at best. They estimated 2 to 3 years before we see any substantial growth. They also speculate that we will never see demand like that again. Tighter credit requirements will remove many people from the line of consumers.
I think I am putting my copper cents in the bank and looking for better investments.
Jim
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Pillar of the Community
United States
618 Posts |
Yep I am a Hoarder now. I admit it.
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New Member
United States
20 Posts |
 cheap way to make bullets I guess if you have the molds.(no, I dont have 'em) |
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Valued Member
United States
311 Posts |
Quote:
This consumption was fueled by the American consumer who leveraged himself into bankruptcy. The U.S. has 4.5% of the world's population and consumed 10 trillion dollars of product in 2006. Compare this to China and India with 40% of the world population and who consumed 2 trillion dollars of product in the same period. That's funny, because everything I was reading at the time blamed the commodities bubble on industrialization/modernization in China and India. Still, my copper cents at $0.01 didn't fare nearly as poorly as oil futures purchased at $120+ a few months ago! |
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Pillar of the Community
United States
2600 Posts |
Chaos, I would guess they were referring to their usage which in large part was shipped right back the the U.S. consumer.
Jim
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Pillar of the Community
United States
615 Posts |
a lot of that stuff is priced at the margin of the supply demand curve.
If demand increases 1%, then the price might increase 5% to bring that 1% to the market place.
I think the increasing demand of US/Asia cause prices to go way high, but the drop in demand caused a huge drop.
At some point, the rest of the world is going to want to consume their share of the world's production.
-SFWUSC
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Pillar of the Community
United States
2224 Posts |
I just checked out that forum also; saw a few names that I recognize from here! Anyway, it will make for some interesting reading later.
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Valued Member
United States
187 Posts |
Realcent is a GREAT forum! I am a member there and I also sort copper pennies. I use a Ryedale coin machine to sort them (see https://www.ryedalecoin.com for information) I dont do it on a huge scale as a lot of people do, but do have quite a few (by my standards) saved. Copper hoarding doesn't have a downfall to it. Your copper penny is worth at least a penny. You cant lose money! Even right now when the copper value makes them worth just $0.01 cents there are still plenty of people paying a premium for them! Even online coin and bullion websites got into selling them. |
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Pillar of the Community
United States
2049 Posts |
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Even online coin and bullion websites got into selling them.
This is true. APMEX, one of the largest online retailers of bullion, sells common copper cents in a similar manner like junk silver. Ok enough posting...I have two $25 boxes sitting at my feet needing to be sorted. I have a good feeling about these boxes... |
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Replies: 24 / Views: 3,453 |
First Page
Posted 02/19/2009 2:32 pm
