Goldman: Buy copper! Sell copper!

This is funny. It gives us a great read on how hysterical is the commodity melt-up amid crashing Chinese property. Goldman can’t decide whether you should buy copper with both hands on shortages:

…we believe that rapidly tightening inventories will eventually force prices higher, and therefore retain high conviction in our year-end price target of $10,500/t.

Or sell it with both hands on crashing Chinese property:

Amid these downside tail risks, we think copper, AUD (and AUD/JPY) and other commodity currencies still stand out relative to option-implied volatility as potential ways tohedge downside risks from the property market.

These two are in the same report! Buy and sell copper, I guess to yourself in the mirror. It’s a win-win.

Or just grab a bucket of popcorn and watch the circus play out.

Houses and Holes

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