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« Randgold Resources Limited: Insurance Against a Fall? | Main | Fronteer Development Group Incorporated Up 100% in 6 Weeks »

Gold and Silver or Copper mmmm

The recent rallies in silver and copper have commanded a fair amount of media and investor attention so some of our readers are taking another look at Copper. We must say that Copper is not our subject but we have put a few charts together that may interest you.

Gold, Silver or Copper 050609

Copper has come to life with a rally of nearly 50% in just a few months which cannot be ignored. However it is important that these performances, impressive as they are, are not blown out of proportion.

One must keep in mind that copper is an industrial metal and therefore its price is very responsive to the global economic situation. A slowing economy means less construction, which takes away a lot of the demand for copper, dampening the price. This same applies to silver, however silver can be considered part industrial-part precious metal – therefore it will get dragged higher with inflationary pressures just as gold does.

But be under no illusion, gold is the asset of choice in terms of an inflation hedge, safe haven and its performance clearly shows this.

Gold, Silver or Copper: Stay With The Metal Of The Kings

Investors have chosen gold over copper and silver as an inflation hedge and safe haven over recent years and they will continue to do so. That is why gold only has to rise about 4% to make a new all time high, silver must rise about 35% and copper would have to gain 75% to reach their highs made in 2008, so it is clear that gold is showing much greater strength over a longer time period. That is why gold is the place to be, with silver expected to outperform and Copper simply playing catch up only as it cannot rival gold as an inflation hedge.

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