Introduces topic of aluminum, noting its price sensitivity to electricity costs and questioning demand given China's deflationary signals.
Scarlet
Acknowledges and reinforces the 'electrified metal' thesis for aluminum, noting its high electricity consumption in production.
Jon Tucker
Mike McGlone
States industrial metals like copper have traded tick-for-tick with the S&P 500 for two years. The key risk is a rollover if the S&P 500 fails to stay above 7000. Views copper above $6 as a 'prudent short'.
Asks about gold's price resilience despite Chinese crackdowns on speculation, questioning the driver of current prices.
Scarlet
Mike McGlone
Confirms significant speculation in gold, primarily from China. Believes gold is 'way too expensive' and has run its course. Fears a shift down as it hits the universal commodity risk of going 'up too much'. Links potential pressure to rising stock market volatility and margin calls.
Notes silver's recent surge above 100 and asks for McGlone's view.
Jon Tucker
Mike McGlone
Predicts a 'down year for silver', especially if the stock market declines. Calls it the 'devil's metal' and views it as a 'prudent short', expecting a drop back to ~50 (old resistance).