Commodities Bubble: US Warehouses Overloaded With Metals
November 17, 2011 · Posted in General Economics
Signs abound that the global commodities bubble, fueled by money and credit creation on the part of the world’s governments, is coming to a dramatic end.
NOLA.com writes Local warehouse space is bursting with stored metals:
Long-vacant New Orleans warehouses are bursting with metals such as copper, lead, aluminum and zinc as manufacturing slows down with the economy. The stockpiles that are accumulating are good news for owners of local warehouses, but the trend has touched off a rare scramble for specialized warehouses in certain parts of the metro area.
Kevin Kelly, owner of Port Cargo Service, a metals warehousing business, said it may take years to run down supplies. He says the city is running out of suitable warehouse space.
“We’re probably close to 98 percent occupancy, which is the best ever,” Kelly said. “I’m considering buying property and building warehouses if I can find good land to build it on.”
With industrial demand slowing down so rapidly, and with the Chinese real estate and government credit fueled malinvestment bubbles coming unglued, industrial and agricultural commodities are in for a well deserved carnage.
To be sure, gold is not an industrial commodity. :)