While gold and silver prices tend to reflect inflation and monetary uncertainty in the economy, copper is a different beast.
The metal tends to reflect the real economy, and whether or not it’s growing. That’s thanks to copper’s use in everything from pipes to wiring. If the economy is growing, so is copper demand – which is usually reflected in higher prices.
That’s even given copper a unique moniker by Wall Street analysts – Doctor Copper. And right now, looking at the economy, the doctor sees a healthy patient.
Copper recently broke to new highs, even while gold and silver continue to consolidate:
Copper prices have broken through multiyear resistance to make new highs. (Source: Katusa Research)
As with other commodity prices, expect some volatility. But the long-term trend of copper is clear – and investors would be remiss to skip out on owning a stake in top copper companies amid this breakout higher.
We continue to like the commodity space and see plenty of reasons for this sector to take off. To get our top play for copper’s breakout, become a member of Grey Swan Pro — details here.
~ Andrew
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