Doctor Copper
Definition of 'Doctor Copper'Market lingo for the base metal that is reputed to have a Ph.D. in economics because of its ability to predict turning points in the global economy. Because of copper's widespread applications in most sectors of the economy - from homes and factories, to electronics and power generation and transmission - demand for copper is often viewed as a reliable leading indicator of economic health. This demand is reflected in the market price of copper. Generally, rising copper prices suggest strong copper demand and hence a growing global economy, while declining copper prices may indicate sluggish demand and an imminent economic slowdown. |
|
Investopedia explains 'Doctor Copper'Investors are cautioned that Doctor Copper is not infallible, and should not be relied upon as the only indicator of economic health. For example, a temporary shortage of copper may lead to rising prices even as the global economy is slowing down; conversely, a copper glut may cause lower prices despite robust economic growth. |
Related Definitions
Articles Of Interest
-
Investing In The Metals Markets
Learn the many options available for investing in the earth's chemical elements, such as gold, silver and rare-earth metals. -
Using Base Metals As An Economic Indicator
Base metals may not glitter like gold, but they can still guide an investor to a conclusion about overall economic health. -
The Copper King: An Empire Built On Manipulation
Find out how Yasuo Hamanaka's actions in the copper market forever changed the rules for commodity traders. -
Who is Mr. Copper?
A sense of mystery still surrounds Yasuo Hamanaka, a.k.a. Mr. Copper, and the magnitude of his losses. From his perch at the head of Sumitomo's metal trading division, Hamanaka controlled 5% ... -
Is The Gold Pain Over?
After falling more than 13%, gold has staged a rebound but is that for fundamental reasons or the work of value investors? Will gold reward investors who didn't give up or is there more pain ... -
Uncovering Oil And Gas Futures
Find out how to stay on top of data reports that could cause volatility in oil and gas markets. -
What Is Wrong With Gold?
Despite its historic and symbolic appeal, this metal is simply a commodity. Here we explore its meaning as an investment. -
The Most Affordable Precious Metals ETFs
Precious metals ETFs invest in both physical commodities and futures contracts for precious metals. -
Playing Blue Gold's Rise
While natural resource investing has exploded in recent years, many portfolios have little to no exposure to water. Find out why they call water "blue gold." -
Most Affordable Commodity ETFs
Here are the most affordable commodity ETFs based on expense ratios.
Free Annual Reports