Gold Over Copper

Sarah Connor: What did he just say?
Gas Station Attendant: He said there's a storm coming in.
Sarah Connor: I know.
--The Terminator

These pages have often observed that gold is a bet on disorder. As gold price rises, those bets increase. Stephanie Pomboy presents another way to look at what's going on by plotting the ratio of gold to copper prices.

at the risk of piling-on,the canary in the financial crisis coalmine has been singing loudly. the relationship btw the metallic barometer of financial insecurity (gold) and the metallic barometer of economic activity (copper) has been a reliable predictor of trouble in the past. pic.twitter.com/K6rjNSpRcB

— steph pomboy (@spomboy) August 7, 2019

When the ratio goes up, it tends to correspond to crisis.

The ratio is going up.