David Threlkeld Sees Copper At $1

David Threlkeld of Resolved Inc. said on CNBC's Fast Money that copper is falling the way any market that is in the fundamental surplus should fall. The cash cost of copper production is $1 per pound, and the world is producing 10% more than it is consuming. We are accumulating copper since 2005, and we are going to have a massive surplus this year.

Copper's price doubled because speculators were buying the residual surplus. David Threlkeld thinks that there are no buyers of residual surplus at this point, and when long term speculators start to liquidate price will go sharply down.

China is speculating on copper, according to David Threlkeld. He thinks that China's production is growing and its copper consumption has always been overstated.

If you agree with David Threlkeld, you should consider a short position in Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX).