Dr. Copper shows gains despite emerging fears

On Friday, the price of a ton of copper purchased for cash on the LME exchange reached $10,500. Contracts for copper with delivery in January cost over $10,300 on Monday. This breaks the record price from May this year. Paradoxically, copper prices are rising rapidly due to the growing demand and shrinking resources of this metal, despite concerns about the condition of the global economy, continued growth and the risk of stagflation.

"The price of copper remains an important parameter for anyone observing the global economy. It is even said that copper has a PhD in economics (Dr. Copper). This is because it is widely used and used in many industries. When the economy is growing rapidly, copper prices are rising, and when a slowdown and recession appear on the horizon – prices fall. It can therefore be concluded that this time Dr. Copper points to growth despite the emerging fears," Paweł Majtkowski, eToro analyst, said.

In his opinion, after the current increase, the price of copper should moderately fall next year due to the increase in production, which is a natural effect of record high prices.

(WBJ)