#copper commodity

COPPER MCX : Remember 665 – 655 are crucial support

COPPER MCX TIPS TODAY : Remember 665 – 655 are crucial support. Break and close below 655 will take at 628–615 !! Hurdle at 695…if crosses and stays above target 705-708.50 on will sell slowly…..will update u !!!

When we all think about any precious metals, gold is what always came to mind. Silver is the less glamorous shiny metal, so always gets forgotten. Investors will always look at gold as a valuable currency and a commodity than silver. We all know that Silver have significant industrial and medical uses. Industrial applications take up Silver in the global production as well so, considered as a commodity.

Silver is a fiat and most valuable commodity. Silver commodity is the important commodity, because Silver is a very shinny white metal which has various uses in our daily life.  Silver is highly reflective and conducts electricity. Silver is also important to medicines because it helps to kill bacteria.

Silver mining has started 8000 years ago and silver is very expensive metal as compared to other. Therefore from past many years people are investing on silver and purchasing silvers for future resources. Silver has inherent value.  Silver is used in many product  and also by new technologies these days to boost the commodity:

• Photovoltaic cells used for solar energy production • In smart phones and tablets. • Production in consumer electronics

Investing in silver means putting money in the production, trading of silver metal is a great deal these days. For most investors this means buying silver is like bullion in coin. Unlike crude oil, corn, the value of silver is not limited to its consumption uses. In fact, while silver does have non-trivial industrial applications, most of its value comes from its status as an investment vehicle.

It depends on lots of factors that Silver is possibly the most stable investment for our future that is why every country has a Silver reserve, managed by the central bank. Silver is very expensive metal same as compared to Silver and platinum. Therefore from past many years people are investing on Silver and purchasing Silver community for their future resources.

Silver-mining take place on every continent. Much of the world's Silver was mined in the post-war era. Recently the production of Silver has highly decreased because the production of other heavy metals like Silver and platinum has also decreased. Silver is extracted by mining only and it is a very expensive process.

Crude oil commodity is a naturally occurring, unrefined petroleum product composed of hydrocarbon deposits in natural underground pools or reservoirs and remains liquid at atmospheric pressure and temperature. Although it is often called "black gold," crude oil has a wide ranging viscosity and can vary in color to various shades of black and yellow depending on its hydrocarbon composition. Crude oil can be refined to produce usable products such as gasoline, diesel and various forms of petrochemicals.

Even though most crude oil commodity is produced by a relatively small number of companies and often located in remote locations far from the point of consumption, trading in crude oil on a global basis has always been robust. Nearly 80% of international crude oil is transported through waterways in large tankers and most of the rest by inland pipelines

What Is Crude Oil?

Crude oil is unrefined petroleum. Crude oil occurs naturally and is predominantly composed of hydrocarbon deposits. Crude oil is valuable because it can be refined to produce everyday products such as gasoline, diesel and a multitude of petrochemicals. Another reason it is considered valuable is because it’s non-renewable making it a finite resource.

Why Is Crude oil commodity So Valuable?

Before the Industrial Revolution, agricultural staples like corn and wheat ruled the commodities market. Today, however, crude oil and its derivatives are the most actively traded commodities in the world. That’s not surprising, considering oil touches just about every aspect of the global economy, in terms of consumer goods themselves as well as their production and transportation.

Oil is a major component in the manufacture of:- Plastics Synthetic textiles, Copper Commodity, (acrylic, nylon, spandex, polyester) Fertilizer Computers Cosmetics Steel In fact, less than half of a 42-gallon barrel of oil actually goes to fuels production; the rest is used to make consumer goods fuel oil commodity. It’s estimated that the average American uses about three gallons of petroleum products per day.

Although the market for oil is global, oil trading has clustered around several primary regions. The crude oil in each of these regions has slightly different characteristics, typically referred to in terms of viscosity (light versus heavy) and sulfur content (sweet versus sour). Each of the major trading regions has established benchmarks to track price movements in oil commodities:

If you live in a real world you might have heard the word commodity, but do you know what it means?

A commodity is a product or a service that can be exchanged between two individuals, two countries, or two continents. They need not be produced where they are needed. Like petrol and diesel are manufactured in middle-east but are used mainly by the Asian countries.

Naturally, the commodity market is divided into two categories, all around the world:

Hard commodity - these include the products which cannot be grown like mineral oil commodity, heating oil commodity. Also, all the metals also come under this category, copper commodity, gold commodity.

Soft commodity - all the crops and livestock are included in this category, this category contains things which can be grown and cultivated. Like corn commodity, wheat commodity.

Further, these hard and soft commodities are divided into other categories.

Energy: Natural gas is one of the commodities included in energy providing commodities. It's used as a fuel to keep the American homes warm and good, during its refining other gases such butane, propane is also formed which are sold differently.

Crude oil is raw oil dug out from the surface of the earth which is further refined into other commodities such as petrol, natural gas, diesel, etc. the world favors light, sweet unrefined petroleum.

Gasoline is a highly exchanged commodity in the UK and the US; it's used in vehicles and keeping the houses warm.

Metals: Since the very beginning gold has been regarded as wisdom metal that is exchanged between nations who dig it with the nations who need it. Indians use this in their weddings, so it is very popular in this Asian country.

Copper is used in almost everything, from electrical wires to building structures and is an autonomously occurring metal and profoundly flexible material, copper can direct power and is an essential follow mineral in every single living thing.

Silver is a popular metal used worldwide and has many properties, in India, there are six categories to define the purity of gold.

Agricultural: Sugar is obtained from sugarcane and is used to give beverages a sweet taste. It is used to a great extent in Asian countries.

Cotton is famous for its comfort, the white spindle cotton made in India is renowned worldwide for many of its properties, and world’s best clothing brands use it as a raw material to make their clothes.

Southern Copper (SCCO) will go ex-dividend on Monday, but that is not the whole story.  The stock price will drop after the dividend and it will likely keep going down.

Southern Copper Stock To Go Ex-dividend Monday (SCCO)

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By TheStreet Wire 08/12/11 - 09:52 AM EDT

NEW YORK (TheStreet) -- The ex-dividend date for Southern Copper Corporation (NYSE:SCCO) is Monday, August 15, 2011. Owners of shares as of market close today will be eligible for a dividend of 62 cents per share. At a price of $31.41 as of 9:30 a.m. ET, the dividend yield is 8.5%.

The average volume for Southern Copper has been 3.5 million shares per day over the past 30 days. Southern Copper has a market cap of $24.7 billion and is part of the basic materials sector and metals & mining industry. Shares are down 36.8% year to date as of the close of trading on Thursday.

Southern Copper Corporation engages in mining, smelting, and refining mineral properties in Peru, Mexico, and Chile. The company has a P/E ratio of 12.4, equal to the average metals & mining industry P/E ratio and below the S&P 500 P/E ratio of 17.7.

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Copper is an industrial metal that goes up in price during a global booms.  When the global economy busts the copper price goes down.  There was a bust in 2008 and then a false recovery 2009-2011.  Investors are beginning to realize that the bust must continue in order to liquidate all the malinvestments made during the boom.  Governments and central banks are hell bent on preventing the markets from liquidating those malinvestments quickly.  They will continue to implement policies that forestall and jeopardize a real recovery.  Southern Copper will suffer as a result.

If you buy, then know that you will be buying on the way down.  I expect a dividend cut.  This company will remain a high dividend stock after it cuts its dividend because the stock price will be falling with the copper commodity price.  Copper peaked in January 2011 at $4.64 per pound.  It is down to $4.05 now and grinding lower on the realization of a “global double-dip recession”.  Don’t be fooled by Southern Copper’s 8+% dividend yield.

Consider buying below $23.04 and sell it above $38.40.  The dividend is in jeopardy due to its dividend payout ratio exceeding 100%.  Its balance sheet is stagnant.

Read my analysis of its fundamentals and technicals http://www.myhighdividendstocks.com/high-dividend-stocks/is-southern-copper-heading-north-or-south-from-34-74#more-515

Disclosure: I don’t own Southern Copper (SCCO)

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