Copper Prices May Hit $100/lb as Oil Surges to $300

Stewart Thomson warns that copper prices could rise to $100/lb, potentially 15 times their current value. He bases this prediction on an inverse H&S pattern in the commodity's price chart, which targets the $8-$10 zone. However, this move would not be isolated to copper, as oil prices are also expected to surge to Thomson's target zones of $200 and $300.

The rise in key commodities is occurring while interest rates rise, much like in the 1970s. This combination has a significant impact on the economy and markets, with potential consequences for GDP growth, the stock market, and government finances. A surge in oil prices would add pressure to the US government's ability to finance itself.

Thomson believes that if interest rates reach 8-10%, they would essentially bankrupt the debt-obsessed government, destroy the overvalued stock market, bring home prices back to Earth, and send gold prices skyrocketing. He predicts a potential game of 'chicken' between gold and the government, where actual rate hikes create panic selling of bonds and the fiat dollar.

In this scenario, gold would surge as confidence in the fiat dollar is destroyed. Thomson sees this leading to a potential price target of $10,000 or higher for gold. He also notes that copper's rise to $50 as part of the 40-year inflation cycle could include occasional 'blow off' moves that reach $100/lb.