Can the hottest copper be used as a hedge against

2022-10-23
  • Detail

Can copper be used as a hedge against inflation

every year, many enterprises around the world use copper to produce various commodities. From automobiles, household appliances, electronic products to construction, copper is widely used in telecommunications, public utilities, industrial machinery, agricultural machinery, etc. According to a study of visual capital, some investors use copper as inflation hedge. Can copper be used as inflation hedge

1. Rising demand and price. The global economic recovery has strengthened. When the economy is in good condition, enterprises increase production and purchase of materials and equipment, and the demand growth promotes the increase in demand for red metal copper. It is necessary to see that when the service life of high-precision testing instruments increases, the price of copper rises

2. It is widely used. Copper wide 2. Electronic universal tensile machine: electronic universal tensile machine is suitable for testing the mechanical properties of all kinds of metal and non-metallic materials, such as stretching, tightening, bending, shearing, tearing, stripping, puncture, etc. it is widely used in electrical, light industry, machinery manufacturing, construction industry and other fields, and copper mine is widely used in enterprises

3. From 2016 to 2018, the copper price has increased from more than 400 US dollars to more than 7000 US dollars. Historically, copper prices have been driven by demand, which is related to the trend of the US dollar, inflation expectations, liquidity, etc

4. Dr. copper and economic operation. In economics, some scholars compare copper to Dr. copper. When the construction and manufacturing industries grow, the sales of copper products increase. As a link to measure economic indicators

5. The price rises, and the quality price of copper rises. The rise in prices comes from the warming economy and relatively strong consumer spending, which are also factors affecting copper prices. Due to this connection, copper prices have risen since 1992 when consumer prices have increased. According to a Bloomberg study, in addition to energy as a hedge against inflation, major asset classes almost outperformed the market, such as the stock market. When consumer prices rise, copper prices generally rise faster, and then connect the power line to gold

6. Can copper be used as an inflation hedge? Investors can improve the yield through portfolio investment, for example, inflation is 3%, the yield is about 2%, and the return is 2%-3% = negative return. In other words, inflation may reduce earnings. The good news is that holding commodities such as copper can avoid losses

7. Copper has a correlation with inflation and the US dollar. With the specialization of industrial production, precious metal copper is used for various industrial and technical purposes. Copper is widely used. Copper is related to inflation and the US dollar

Copyright © 2011 JIN SHI