Copper Mountain Mining Corporation T.CUM

RE:RE:This is why copper miners are down

[geezer21]

"...this was a RESOURCE SELL-OFF..lots of hawkish inflation talk of 50 to even a 100 basis point interest rate hikes being discussed..oil was up and all the oil stocks sold off as well."

Yes, that was the jerk knee response to Federal Reserve Chairman Powell's comments today.

However, inspite of interest rates hikes the commodity boom is going to continue. Commodities are real tangible assets.

Fundamentals driving copper demand for semi-conductors, solar, EV's, wind turbines, etc is not going to slow as it has become clear earlier last year that it is no longer possible to increase oil production in any meaningful way.  With oil shortage and rising oil prices EV production is ramping up at a break neck speed.  Battery production is ramping up - think Tesla gigafactories.  And lots more.

A boom in electrification is underway now. Semi-conductors are the bell weather of what is happenning. Chips are in everything now.

Largest semi-conductor producer TSMC is spending 44 billion now for plants in Arizona and Japan.  Spain is spending 12.4 billion on a chip plant.  EV manufacturers had to slow some production because of a shortage of chips.

The Ukraine war has become the impetus toward commodity backed  (copper etc.) currencies to get away from unbacked depreciating U.S. fiat reserve currency (hence interest hikes to shore up the U.S. dollar). 

Inflation is not things getting more expensive but the dollar losing value from over printing and flooding the world with dollars. It is commodities like copper that are retaining their value.  Russia, China, Indonesia, India, the Bricks and even Saudia Arabia are trading in local currencies and divesting of dollar holdings.  China has been hoading metals for several year now including copper.  China, Russia, other countries, banks, and individuals have been accumulating gold.  The U.S.A. dollar share of global trade has been declining.  U.S. closing off SWIFT was an attack on dollar reseves held by sanctioned countries. 

The United States has been engaging in financial war against the rest of the world.

Raising interest rates is not going to work.  Everyone, coporations, and government are so in debt up to their eye balls that as soon as the Fed starts raising rates all hell will break loose and the Fed will swing back into easing mode.