Copper Sets the Gold Standard For Commodity Price Surge
August 17, 2020
Much has been written about the impressive rally that gold has had recently, but copper has had an even more impressive run. The Economic Cycle Research Institute (ECRI) has noted the surge in copper prices, and argues that it is an encouraging sign of an upswing in industrial growth.
While the price of gold has climbed 33% since its March low, the price of copper has jumped 39%. For ECRI, the increase is not just impressive, but part of an important larger trend. ECRI notes that its internal index tracks commodities that are not exchange-traded, like copper. They assert that this means the index is not impacted by speculation and that the increased prices for industrial commodities are due to actual demand.
ECRI does note that a potential faltering in consumer spending could derail the upswing in industrial production, but notes that, for now, both exchange-traded and non-exchange-traded industrial commodities are “surging in sync.”