Why gold is different

The prices of both oil and copper have fallen of late prompted, say some, by fears of a global slowdown. But gold could be about to make its next move up. Why is it such a perennially strong investment?

OPEC continue to say that they can put in a floor for oil at about $60 per barrel, a hard trick considering they control no more than 35-40% of global production. The recent short-term oil weakness underlines the difficulty of their position and further it might be that America is leading the world into a global recession, one which will reduce, in the short-term, the demand for energy. If that turns out to be so, then the bull market for oil isn't over, we will just see a decent pull-back, offering an opportunity in the future to buy back into this multi-generational bull market.

The copper price has weakened whilst other base metals have been stronger. This might be adding fuel to the global slow-down point of view. Copper is often termed Doctor Copper' because of its importance to global economic growth. Here again, the long-term story remains sound, so it's another market to buy when it's lower in the future.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Explore More
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.