Copper vs Gold Performance as an Inflation Hedge
Copper vs gold is drawing renewed attention as gold surges to record highs. Over the past month, gold climbed to $3,650 per ounce, setting a new all-time high, and Goldman Sachs has floated the possibility of prices reaching $5,000 per ounce if global uncertainty persists.
For investors, the surge in gold forces a natural comparison – does copper offer greater long-term value? Examining copper vs gold performance over the past two decades sheds light on which metal has been the more dependable hedge against inflation.
Why the Comparison Matters
Why compare copper to gold? Copper is one of the largest markets in global production value. In 2024, the dollar value of copper was estimated to be between $250 billion and $ 300 billion USD.
By contrast, zinc and nickel each represented only about $25–30 billion, making them much smaller markets. Interestingly, the value of total gold production in 2024 was also close to $250 billion, which makes copper and gold comparable in scale.
Beyond its industrial uses, copper also has a monetary history. Ancient Rome minted copper coins, and like gold and silver, it has continued to serve as both a practical and symbolic metal.
This historical and economic backdrop makes the copper vs gold comparison both valid and insightful.
Copper vs Gold Price Performance Over 20 Years
Looking at a 20-year weekly chart from TradingView, the results are striking. Over the past two decades, gold has surged by about 710%, while copper has gained just under 170%. For much of that time, the two metals moved in sync, but the divergence became clear after 2024: gold nearly doubled in price while copper stayed flat.
Here’s your passage rewritten in active voice, while keeping the analytical tone:
During the same period, the Consumer Price Index (CPI) rose 66%, and both gold and copper served as effective hedges against inflation. In our analysis, Gold as a Hedge Against Inflation: Reality Check, we showed that gold’s long-term return averages about 2.6% above inflation, yet it posts negative returns in roughly one-third of years—evidence that its hedge properties remain far from perfect.
Which Metal Is the Better Inflation Hedge?
Gold is still seen as the ultimate safe haven, but much of its demand comes from investor sentiment. This raises an important question: if investors want an inflation hedge, why do they chase the most expensive option instead of opting for the more affordable alternative—copper?
Copper offers three key advantages:
-
It is highly liquid.
-
It has proven to be an effective hedge against inflation.
-
It benefits from strong industrial demand.
Gold, while enjoying momentum, may no longer offer the same value proposition at today’s elevated levels.
Investor Takeaway
No one knows when or if gold will correct, but one thing is sure – emotional attachment in financial markets is dangerous. It often leads to losses. Wise investors remain agnostic about asset classes and make decisions based on relative value.
Gold may be flying, but gravity always applies. Copper, on the other hand, offers a more value-driven alternative hedge against inflation.
In short, the performance of copper vs gold indicates that copper offers a more compelling relative value over the long term.