Worried about a recession, and you have the stomach for some news that could exacerbate recession fears? Well get this… copper is an indicator of a recession. In each of the last four recession copper entered bear market territory before the recession began.

The benchmark London Metal Exchange copper price has now fallen 24% from its peak above $10,700 a tonne in May 2021 Friday to trade at $8,255 a ton.

Copper, which is in today’s world with electronics, is in a vast amount of products we use, especially electronics. With China in lockdown due to COVID, that halts a lot of manufacturing in China. Therefore we are seeing a demand shortage for copper.

Currently copper is down 24% from its high and we have great recessionary concerns around the world.

Electric vehicles are some of the largest products that we use that a lot of copper. Typical car has between 20 – 50lbs of copper, but EVs have around 180lbs of copper. More and more products are using copper, and to see the demand slow down is alarming.

In four of the last five recessions, copper entered bear market territory before the economy went into a recession. In many of the last recessions oil prices spiked, which in today’s economy oil prices are inflated. Many indicators are pointing to a recession, so start preparing for the worst, and of course hope for the best.