Base Metal Sell Off Could Be Ominous Sign : Small Time Blog

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Base Metal Sell Off Could Be Ominous Sign

by Bradley Voight on 04/18/13

Copper, Lead, Aluminum, Nickel, Zinc. These are known as the base metals and they are the raw materials of the world economy. Base metals have been falling in value since early February and on Monday of this week the selling accelerated after China reported economic growth of 7.7% for the first quarter 2013. China is seen as the driving force of demand in the world economy right now because western economies are growing at a much slower pace of around 2-3%. Think of it this way, America is built out and expanding slowly and China is moving population to urban areas like America was in the early 20th century. The growth rates of both economies reflect this reality. 


Smalltime is all about education on matters that will ultimately affect the pocketbooks of ordinary people. Slowing demand for base metals could mean a slowdown in the emerging economies, the so called BRICS countries (Brazil, Russia, India, China, South Africa) This could cause the already heavily propped up by stimulus world economy to slow even further. Smalltime thinks that some parts of the world are already in a semi-depression, such as Europe, North Africa and the Middle East. 

Smalltime thinks that the world economy is at a crossroads and could go either way from here, which is scary because it seems closer to collapse than boom.

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