Why Investing in Gold, Silver, and Copper Is Still Profitable

Investing in Precious Metals: A Wise Choice

The prices of gold have surged to record levels, with spot gold reaching a new high of $2,449.89 per ounce last Monday.
Silver and copper have also hit multi-year highs at the beginning of last week.
As an expert in the field, I have been advocating for investing in gold and silver for many months now, explaining the reasons behind these choices in my previous articles.

Gold: A Safe Haven Asset

Gold, currently trading at $2,333 per ounce, has been on an upward trajectory due to the weakened US dollar and lower US Treasury yields.
Geopolitical risks continue to support the demand for this precious metal, with a significant increase in gold purchases from China, both by the Central Bank and private individuals and companies, fueling the price rally.
China has become the top consumer of gold bars and jewelry, surpassing India in recent years.

UBS strategists have raised their gold price forecasts to $2,500 per ounce by the end of September and $2,600 by the end of the year, citing strong Chinese demand and subdued US economic data leading to revised expectations for Federal Reserve rate cuts.
Higher Fed rates could pressure gold prices, but if the Fed cuts rates as expected, gold could continue its upward trend.

Check out the table below for the inverse relationship between US Treasury yields and gold prices over the past year.

Silver: The Undervalued Asset

Silver, often considered the ‘poor man’s gold,’ has also seen a surge, reaching over $31 per ounce last Wednesday, its highest level in over a decade.
With a smaller market than gold, silver can offer speculative appeal to investors, especially as industrial demand remains strong and supply struggles to keep up.

As the Fed eases monetary policy, silver may outperform gold, supported by robust industrial demand and constrained supply.
The slow growth in mining production and steady industrial usage indicate a structural supply deficit in the silver market.

Copper: The Industrial Darling

Copper recently hit a historic high of $10,857 per ton last Tuesday before retracing slightly.
The metal’s prices have been supported by supply constraints, with lower-than-expected production leading to reduced surpluses.

Despite strong demand, especially in manufacturing, supply issues pose a challenge for copper.
Key producers like First Quantum Minerals and Anglo American have faced disruptions and cost pressures, affecting future output.
Analysts at Citi believe that copper still has room for further upside, with price targets of $12,000-$15,000 per ton in the next 12-18 months.

How to Seize the Opportunity

For those looking to invest in gold, consider ETCs like Invesco Physical Gold A (ISIN IE00B579F325).
Speculators interested in silver can explore options like WisdomTree Physical Silver (ISIN JE00B1VS3333), while those bullish on copper can look into ETCs like WisdomTree Copper (ISIN GB00B15KXQ89).