More precious than gold, copper is a better inflation hedge
Copper is a more reliable economic bellwether as it is used in construction and manufacturing
New York
FOR centuries, gold has been a go-to asset among investors worried about all sorts of financial risks. In the past decade, exchange-traded funds backed by the metal drew more money than any other commodity. Even the world's biggest central banks hoard bullion as a reserve asset.
But when it comes to inflation, which can erode the value of portfolios that don't keep pace with rising consumer prices, anyone who bought gold as a hedge over the past 25 years missed out on a much better deal - copper. While data shows that broad commodity indexes provided the best bang for the buck during periods of rising costs in the US, the red metal stands out.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Energy & Commodities
China State Shipbuilding to build 18 LNG ships for QatarEnergy
Shell earns US$1 billion a year from US crude trading, court filing shows
Gold eases as steady US dollar dampens appeal
Oil prices fall 1% on Israel-Hamas ceasefire talks, US inflation concerns
Hot stock: Don Agro surges after plans to sell 92.3% group assets for 4.5 billion roubles
China could hinder BHP’s bid to become copper’s top producer