Dr Copper in the house
|S2N spotlight
I came across this quote from Alfonso De Pablos from All Star Charts:
“Copper vs. gold is a key barometer for risk appetite and economic strength. Every time it’s dropped to these levels over the past 16 years, buyers have stepped in… I can’t think of a more logical place for it to begin outperforming gold than right here.”
I have never really heard much about this ratio before, so I decided to do some of my own analysis. The green line is the ratio of copper to gold. The blue line is copper.
Here is my 5 copper cents worth. There seems to have been a very strong relationship with this ratio in the past; I go back to 1980. It seems this relationship has broken down over the last 5 or so years.
I looked at the relationship with the ratio and gold and couldn’t see anything really. Maybe 5th cousins twice removed.
In summary, the relationship between the copper-to-gold ratio and the copper price has been strong over many decades. Not so much in the last few years. I wish I was as confident as an All-Star, the only logical conclusion I can come to is I have no clue what to make of the idea of copper outperforming gold.
S2N observations
My temperature is back to normal, but there may be some delirium left in the system.
S2N screener alert
There were so many new ATH yesterday; the one that I think deserves special mention is Bitcoin. Michael Saylor must be as drunk as a sailor on his good fortune. I still think gold is the more responsible play on currency debasement, but Bitcoin cannot be ignored.
S2N performance review
S2N chart gallery
S2N News Today
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.