Eurodollar University Copper-to-Gold Ratio Just Sent a HISTORIC Warning (This Is Bad)
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Aug 4, 2025 Steve Van Metre, an expert on economic growth and market trends, shares insights into the significant drop in copper prices and what it means for the economy. He discusses the alarming decline in the copper-to-gold ratio, which serves as a warning sign of potential economic downturns. The conversation highlights the disconnect between misleading GDP figures and troubling fundamentals, as well as the rising long-term unemployment and its implications for economic stability. Van Metre underscores the vital need to monitor these economic signals closely.
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Copper-to-Gold Ratio Signals Weak Economy
- The copper-to-gold ratio fell to its lowest level in over 40 years, signaling economic weakness beyond tariff distortions.
- This historic drop aligns with other weak U.S. macroeconomic data, indicating that the economy is not on the right path.
Copper Reveals Economic Growth Reality
- Copper prices reflect real economic demand since copper is vital to construction and growth.
- The recent drop post-tariffs shows prices returning to fundamentals, highlighting weakening demand and economic slowdown.
Financial Signals Warn Economic Trouble
- Financial signals like swap spreads and the copper-to-gold ratio align to warn about economic weakness ahead.
- These signals predict a worsening economy even as the stock market and some mainstream data appear optimistic.