4 Reasons Why Investors Are Turning To Copper As An Inflation Hedge

Written by The Money Lab Team on March 13th, 2018

Copper is dethroning Gold as the once-great inflation hedge, here’s why…

You’re going to be shocked when I tell you this.

You encounter vast amounts of copper every day.

It’s in your phone, hidden in your transport, its in the infrastructure you use daily, in the buildings you live and work in, not to mention it also features in the industrial sector you need to run your life.

It’s everywhere!

And that’s precisely one of the reasons investors are turning to Copper as an inflation hedge.

In years past, investors used to flock towards Gold as a safety net.

But things are changing, and other industrial metals are becoming very specialized in their use, whilst precious metals (like Gold & Silver) are often driven by investor sentiment.

That’s where Copper has snuck in.

You see, Copper has a vast number of technological and industrial uses, which actually makes it a proxy for an economy as a whole.

Because its used to manufacture a wide variety of goods, its said to be closely linked to the health of an economy.

Jodie Gunzberg from the S&P Dow Jones Indices, even states that, “Copper is more sensitive to inflation and the dollar because of its uses and its growth with the economy”.

But why exactly are investors flocking towards Copper as an inflation hedge?

Here are four reasons…

 

Is Copper Your Next Big Inflation Hedge?

 

4 Reasons Why Investors Are Turning To Copper As An Inflation Hedge

 

(Source)