Simon Hunt, a consultant on the global economy and copper industry trends, shares his forecast on inflation and geopolitical risks. He discusses two potential economic paths: one of stagflation fueled by stimulus and another leading to a systemic crash. Hunt predicts fluctuating copper prices influenced by financial hedging and highlights a shift towards a gold-backed currency in BRICS nations. He emphasizes the importance of holding physical assets and stockpiling essentials amid looming economic volatility and geopolitical tensions.
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Two Macro Paths, Same Inflation Outcome
The global economy faces two main scenarios: heavy stimulus causing stagflation or a slowdown leading to recession and systemic crash.
In both cases Simon Hunt expects rising inflation and investors will use assets like copper as hedges against a falling dollar.
insights INSIGHT
Copper: Short Dip, Big Financial-Driven Rally
Simon forecasts copper falling to about $7,000 short-term then rising to roughly $14,000 by end-2027/early-2028.
He argues financial demand from investors will drive prices more than physical consumption.
insights INSIGHT
Cycle Convergence Points To 2026 Peak
Multiple historical cycles converge around 2026–2028, implying a peak next year followed by six years of decline in business activity and prices.
Simon warns conventional linear forecasting will likely fail during this volatile period.
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Tom Bodrovics welcomes Simon Hunt, a consultant on the global economy, to discuss the future of the world economy and copper demand over the next eight to ten years. Hunt presents two potential scenarios for the global economy: one where central banks and governments stimulate the economy leading to stagnflation and high inflation, and another where the slowing economy turns into a recession followed by a systemic crash. Despite these scenarios, Hunt predicts that equity prices will outperform GDP growth as investors seek hedges against rising inflation and a falling US dollar, potentially driving up copper prices.
He forecasts that copper prices will fall by the end of next year and then rise again by the end of 2027 or early 2028. Hunt also discusses the convergence of various cycles that suggest volatile years ahead, with a potential peak in business activity and equity prices next year, followed by six years of decline. Geopolitical tensions, particularly between the US-led unilateral world and the BRICS-led multilateral world, are expected to continue, with potential flashpoints in Africa and the Middle East.
Hunt also highlights the shift in the global economy towards a gold-backed currency within the BRICS nations, which could challenge the US dollar’s dominance. He advises listeners to prepare for volatile times by holding physical gold and precious metals outside the banking system, maintaining cash for daily living, and stockpiling food. Hunt’s insights provide a sobering perspective on the global economy’s future, emphasizing the need for preparedness and a focus on the big picture of geopolitical shifts.
Simon Hunt began his career in 1956 in Central Africa as a PA to the Chairman of Rhodesian Selection Trust, one of the two large copper companies in what was then Northern Rhodesia, now Zambia.
In 1961, he came back to London and joined Anglo American Corporation of South Africa as a PA to one of the Board Directors, followed by being part of a small sales and marketing team for copper. From there, he helped start up a new copper development organization, CIDEC, financed by copper producers, which he then joined, focusing on conducting end-use studies of copper in Europe.
He then went into the City to gain financial experience and founded Brook Hunt in 1975. He was instrumental in setting up the company’s cost studies and end-use analyses. Simon appeared as material witness and consultant in two ITC anti-dumping cases in 1978 and 1984, winning both at the commission level.
He has spent 2-4 months every year in China since 1993, and until a few years ago would be visiting some 80 wire and cable and brass mill factories across the country every year. He now restricts these factory visits to a smaller number, all of which he has known for many years. Simon also spends many weeks each year traveling around Asia.
The focus of the company’s services is on the global economy, including the changing geopolitical and financial structures, China’s economy and its copper sector, and then the global copper industry as each part is interconnected.
Simon is the author of the “Frontline China Report Service,” which is marketed by the TIS Group. The Service provides regular reports on China’s economy, politics, and financial outlook.
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