Buffett Buys A Copper Stock!?

coppertube

Just kidding. Warren Buffett’s Berkshire Hathaway may or may not own copper stocks. I did not dig deep enough to find out. For the purposes of this post, it does not matter.

With the Buffett Buys a Gold Stock! hysterics last summer, the subsequent (and inevitable) fallout, and the Buffett Pukes a Gold Stock! resolution, you never know. It’s worth asking the question about what sort of investors are now true-believing in copper and the industrial metals where once upon a time last summer gold was the object of affection.

Look, the contrarian dynamics in play now are 180° from where they were last spring, coming out of the deflationary crash when we first started to get a handle on and act upon the coming inflation aimed at reflating the economy. NFTRH has used a lot of indicators, starting then and continuing today to be on the right (inflationary) side of this macro dynamic. With all due respect and foresight about macro decision points to come, we remain on the inflationary side today.

Hence, gold is on the outs relative to cyclical assets subject to inflation/reflation, as it should be during such a phase…

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gold

Copper is thrusting upward in the cyclical bull market it broke into a few months ago…

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copper price

The CRB Commodity index is starting to poke through a very important long-term resistance area…

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crb index

So Buffett bought a gold stock at the top and sold that same stock, Barrick Gold, as the gold stock sector enters the final stages of its correction, which may end in a typical capitulation (we are updating the process and HUI targets in NFTRH updates and individual miners in NFTRH reports). Even at a new cycle low today, HUI has not yet touched the most optimistic of the open downside targets.

But I and I am sure a healthy number of subscribers are in a position of anticipation because there really is nothing new under the sun. When ole’ Warren bought Barrick last summer foremost bull horns in the gold “community” could not wait to broadcast, admonish and tout the news. Warren Buffett… ooh! It was a classic indicator of caution.

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