Source: International Business Times                    Date: 05 October, 2011

Bear markets in copper and silver has some fearing global recession, but those worries may be unfounded.  Both copper and silver are top imports from Mongolia and has had a significant impact on current economic conditions.Projections indicate that a massive selloff in copper would not have a huge effect on returns for the S&P 500. Data from the market indicates that both copper and silver are oversold, but future prices will likely follow the movement of the U.S. dollar. The rally in the dollar is putting pressure on risk assets such as equities, precious metals and oil.Clearly the price action in silver and copper in late August and throughout September has been ugly. Both metals are oversold in nearly every time frame, however if the Dollar continues to strengthen we could see deeper declines in both silver and copper prices as illustrated in the charts above.Market data suggests that equity returns following a drop in copper prices does not mean lower domestic equity prices in the United States are certain. However, a slowdown in activity in China has had a direct impact on copper prices.  If the U.S. dollar continues to strengthen, copper and silver will likely trade lower.