Traders Sell Copper, Make Japan’s Rebuild Cheaper

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You know you won’t see such a headline tomorrow so I wrote it. This is not a blog post about the horror that occurred this weekend in Japan as much as it is an indictment on the MSM and how much more American media could go to educate Americans in financial literacy. Of course, they are not concerned with anything but their ad rates.

If copper was up 10 cents, you can figure for yourselves what headline they’d make up to sell “papers.” I guess in the end, not even sensational headlines can help a sh*tty newspaper prop up their sh*tty stock.

Since the public will probably never see an unbiased media write about commodities and the roles of traders and investors, this would be a good time to explain to everyone one of the two functions of the commodity markets and the collective actions of its participants: price discovery.

Despite the horrific catastrophe in Japan that puts the human loss at about 2.5 to 3x that of 9/11, the copper market is open for business. It is telling everyone who cares that there is so much copper out there, that despite the sizable rebuild that Japan will need to undergo, prices are between 4 and 6 cents cheaper than from those of Friday’s close.

How valuable is information when you need it most?