Monday, February 28, 2011

Will China rate hike have any impact on copper price

By Rachel F Paiste

Commodities markets are incredibly volatile, as natural disasters, governments, wars and any other numbers of factors can affect the prices for the products. There is new concern about copper.

China just raised their interest rates, and the global markets are concerned that the demand will slow in the nation now that the cost has risen. China is the world's largest consumer of copper.

Analysts are constantly changing their answers to be in line with the fluctuations of the market, but most seem to be sticking with the idea that copper prices will rise. The question that remains is how large will the increase in price be.

Do you have investments in copper? Are you interested in learning more about the trends in the commodities markets? Speak with a certified financial planner in your area.

Financial planners can help you to organize your stock trading, treasury bonds and mutual funds as well as help you with general money management and even health insurance.

China, in an attempt to curb inflation, increased their borrowing costs for a third time February 8. On top of that, Citigroup Inc.

reported that China's copper imports were either weaker than December or remained flat in the month of January.

Analysts suspect that base-metal prices will continue their downward drive through February, and hope to see it move back up when China's 5-year plan is announced in March. If you have copper investments, speak with your financial adviser about what these changes mean for you and your savings.

Still have questions about commodities markets? Call your fee-based financial planner for a more in-depth conversation.

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