, Columnist
As an Economic Forecaster, Copper Fails Miserably
The metal’s prices are no more indicative of recession than sunspots or other forms of capitalist divination.
Not so wired when it comes to economic prognostication.
Photographer: Thomas Trutschel/Photothek via Getty Images
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Copper prices have faltered in recent months, prompting prognosticators to revive one of the more tiresome tools of market divination. When copper prices decline, conventional wisdom has it, there’s trouble brewing for the global economy, given the centrality of the metal to so many vital industries.
Copper’s predictive powers have prompted many pundits to dub copper the “only metal with a Ph.D. in economics,” suggesting that this vital commodity has special insights into future booms and busts.