Copper hit a fresh all-time high of US$6.90 ($9.80) per pound during Thursday trading in the US.
The US is also seeing record inflows as the market positions itself around tariff policy from the Trump administration.
These days, copper is heavily associated with the AI data centre build-out and the switch to electric vehicles.
Traditional economic demand remains important and is something many investors underestimate. A research paper estimated this category accounted for over 90% of demand last year.
Data supports this.
The US economy is strong. This is observable in many different ways.
One example, of course, is the rising price of copper. It’s not called ‘Dr Copper’ for nothing. The market is bidding very strongly here.
Another example is rising bond yields in the US. Fixed income investors are pricing in the strengthening economy.
Here’s a third. Research house SentimenTrader produces a proprietary monthly measure of indicators called the JK Economic Barometer.
It has just given one of its strongest readings on record. The firm says the US stock market index, the S&P 500, was higher one year later in 90% of the 10 previous cases.
A fourth example is that the credit creation from the US Federal Reserve is rising again, according to Professor Richard Werner.
He wrote recently: “While the Bank of Japan continues to reduce its credit creation, the Fed’s has finally turned positive. Meanwhile, economic growth is likely to accelerate in the US.”
Perhaps this is why copper has a Ph.D. in economics.
Write to Callum Newman at Mining.com.au
Images: Unsplash
