This past week was the worst on record since the pandemic started in 2020 for the metal copper. Unfortunately, this is an inevitable sign that a recession is on the horizon and right around the corner.
Copper is widely known for its use as a significant component in electronics and motors and is often used as a forerunner of economic well-being on the stock market trading floor. This week though, it fell as low as $6,953 a ton on the London Metal Exchange on Friday. The commodity recovered later in the day, with the three-month price rising above $7,170.
Still, copper posted its most significant one-week percentage decline not seen since late March 2020, at the height of the pandemic and the related shutdowns that occurred that shook the economy worldwide. In the past four months, copper has fallen about 35%, which wiped out any gains earned at the rise of the conflict in Europe. The overall year-to-date drop in price for copper right now is at 28%.
Copper officially entered what is called a bear market — which is when a market experiences prolonged price declines. Copper entered the bear market stage at the end of June, an occurrence that has preceded every recession over the past 30 years, which is why it is believed now that a recession is inevitable. Read more