Thoughts on Gold vs. Copper as Inflation Hedges
I've been thinking a lot about the 'inflation hedge' narrative for commodities, specifically comparing gold and copper. Everyone piles into gold during inflationary fears, and sure, $US30 is up, but I really wonder if that's still the smart play. Copper, on the other hand, seems to have a far more tangible industrial demand driver. If we're talking real inflation, driven by supply chain constraints and manufacturing costs, shouldn't copper be the more direct hedge, given its essential role in almost everything? It feels like gold is the 'safe' psychological bet, while copper is the actual economic barometer.
I just don't see the long-term utility in gold beyond its scarcity and historical store-of-value appeal when industrial metals like copper are literally building the future. Am I missing something fundamental here, or is the market just stuck in old habits? Push back on this, I'm genuinely interested in other perspectives.
That's a really interesting point about copper's industrial demand. While gold is traditionally seen as the go-to, I wonder if copper's ties to the green energy transition could give it an edge in the long run, even beyond just inflation hedging.