Incredible what is happening to copper, the word to the expert

It can anticipate business cycles. Predict the market trend. CopperItalian translation of “copper”, it’s as if he had a doctorate in economics, to quote a sentence from Rjo Futures senior asset manager John Caruso. In fact, copper is so sensitive to economic trends that it is able to anticipate or predict the direction of the market, because it is deeply correlated with global GDP. How? Essentially when the value of copper falls aggressively, so it is likely that the stock markets also suffer sharp drops. And that above all a negative economic cycle is about to open.

Why is copper so important to keep an eye on?

Over the past 4 months, copper has lost more than 30 percent of its value, marking a negative record comparable to the first wave of covids in 2020. Basically, since March, red gold has been slowly depreciating, and that means one thing briefly. : we are entering a recession.

In fact, a drop in price is linked to a drop in demand for copper, and if copper is required less and less it means that many production chains are slowing down their pace a lot.

In fact, copper is necessary in the construction of new generation televisions, in smartphones, where it is the most present metal of all, essential for wiring. But also in the batteries for electric cars, which as we know represent the future of urban transport.

It is also used in solar energy systemsin boilersin pipes drinking water and gas, including in the covering of roofs and gutters. Furthermore, metal alloys such as bronze, aluminum and brass.

For all this series of reasons, copper is called “red gold”: it is increasingly important to monitor the trend of its value to get a quick idea of ​​the global economic direction. Hopefully, this trend reverses quickly and copper is back on track. Honestly, I think this is just a momentary setback due to international uncertainty and the covid emergency that has just been overcome.The uses of copper are really many and varied, therefore it will hardly go into crisis from here to years to come.