While gold was at the epicenter of media attention during its multi-percentage point decline last week, copper is the metal everyone should really be paying attention to. After falling -6.1% last week, copper is down -1.2% this morning to $3.11/lb. That brings the damage on copper to -15% year-to-date, as you can see in the chart below that shows the de facto standard futures contract for copper: London Metals Exchange High Grade 3-Month Copper.
Copper and other commodities will continue to decline in price as the great commodity bubble created by Federal Reserve Chairman Ben Bernanke and his monetary policies deflates. We remain bearish on commodities and still like our Freeport-McMoRan Copper & Gold (FCX) short. The stock is already down -1.7% this morning and has declined -21.1% over the last three months.