Why Investors Turn To Copper As An Inflation Hedge

Every year, a vast amount of copper is used by the global economy to manufacture a wide variety of goods.

It’s a major ingredient in big-ticket consumer goods like autos, appliances, electronics, and new homes. Simultaneously, Visual Capitalists' Jeff Desjardins points out that copper is also gobbled up for many industrial uses including telecommunications, utilities, construction, and industrial machinery.


Today’s infographic comes to us from Kutcho Copper, and it shows the red metal’s important role in the economy, as well as why it has become a famous economic bellwether.

Courtesy of: Visual Capitalist

Rising Demand
When the economy is doing well and new things are being made, demand soars for the red metal.

Rising Price
When demand goes up, it drives the price of copper higher.

All Eyes on Copper
Because of this historic relationship, analysts around the world watch the price of copper closely.

Dr. Copper
Copper’s long history of predicting economic movements has famously earned it a nickname as the metal “with a Ph.D. in economics”

In other words: when construction and manufacturing are growing, so do sales of copper products. But this link as an economic gauge has other important implications, especially to investors looking to build a robust portfolio.


While copper’s link to economic trends is interesting, it’s power to shield a portfolio from inflation is even more compelling.

Rising prices come from an overheating economy with strong consumer spending – the same factor that is an influence on copper prices. As a result of this connection, tor every 1% annual increase in consumer prices since 1992, copper’s price jumped almost 18%.

In an analysis by Bloomberg Intelligence, copper outperformed every major asset class aside from energy as an inflation hedge – and during periods of rising consumer prices, copper had triple the 5.2% gain logged by gold.


Inflation can absolutely kill an unprotected portfolio.

Why? If inflation is higher than the portfolio’s rate of return, then that portfolio is actually producing a negative real return. (Example: 2% growth – 3% inflation = -1% return)

In other words, inflation can be a “stealth” threat that chips away at returns, especially for fixed income portfolios. The good news: holding copper or other commodities can protect against rising prices.


At the end of the day, other industrial metals are very specialized in their use, and precious metals tend to be driven by investor sentiment.

Copper, on the other hand, is used in a vast array of industrial and technological uses, which makes it a proxy for the economy as a whole.

Copper is more sensitive to inflation and the dollar because of its uses and its growth with the economy.

– Jodie Gunzberg, S&P Dow Jones Indices



All Risk No Reward shankster Fri, 03/09/2018 - 15:06 Permalink

Actually, you probably hit on something without knowing about it.

Ceruloplasmin, and possibly metallothionine, deficiencies lead to copper dysregulation within the body.  This is a **huge** problem that leads to a number of health conditions.

#90: Most Health Issues Stem from Copper Dysregulation PART 1 with Morley Robbins

Live to 110 Podcast #91 Copper Dysregulation Part 2 with Morley Robbins

GotMag.org - Copper Related Links

Note that copper, estrogen, and calcium all tend to rise higher together.

Dysregulated copper has negative health impacts, and the root cause, ceruloplasmin deficiency, also dysregulates iron in the body.  This leads to high levels of oxidative stress induced cellular inflammation.  This is yummy for Big Pharma bottom lines.

Unbound (with ceruloplasmin - to prevent oxidative stress as it flows through body) copper tends to store in the liver and brain.  It tends to promote emotion-based thinking (explains a lot, right?  It isn't magic, it is a metabolic process).

Estrogen promotion hyper-feminizes women and feminizes men.  This explains a LOT, right?  It ought to be obvious that a criminal Money Power Monopolist cabal would prefer to deal with hyper emotional feminized people, both women and men, than a population of hyper-masculine people.

Note that the birth control pill and the IUD are copper based.  The "placebo" birth control pill is iron.  They Money Power knows what it is doing - and they are smarter and more cunning than you are.  Or me.  All I've done is listen to a wide variety of material and latched onto the data and logic that makes rational sense given our Money Power financed milieu.

Excess "chalk" calcium tends to dull awareness and energy as it kicks out the energetic magnesium from the cells.


On conclusion, yes, copper is absolutely "for dinner," but it isn't there to promote health and wellness, it is there to make us sick, wear us down, and reduce our awareness, all to the benefit of a criminal Supranational Money Power Monopolist Global Mega-Corporate Fascist Empire system.

In reply to by shankster

Grandad Grumps Thu, 03/08/2018 - 20:24 Permalink

copper is commodity that has ectual use when compared to gold and even silver. If you want to maintain welath during a crisis, then stick with productive or valuable assets and not their proxies.

InnVestuhrr Thu, 03/08/2018 - 20:52 Permalink


Red metal has been better investment than both shiny shits !!!

All the shiny shit apocalypse cult fanatics better not read this post or there may be mass suicides.

Manipuflation Thu, 03/08/2018 - 22:12 Permalink

I like copper and do have some but it is bulky.  If you have a place to store it that is great.  I'm thinking at gold right now and haven't for several years now.  I'm feeling it.  I don't have gold bullion bar for trade and all of my gold is tied to numismatics.  That is why I never sell gold.  Well, I need to address that don't I?  

Twenty years of doing this.  It is easy to overthink it.  I just don't sell gold because I am not looking for paper or digital profit.  I do 401Ks or any shit like that.  This goes to my kids directly and they are instructed that it should go to theirs should they have any. 

I have no illusions but rather a vision.  Maybe it works and maybe not but what will I care?  I'll be dead and the state will have one hell of time trying to prove anything taxwise.