Is Copper a Good Hedge Against Inflation?

Okay.

Does copper uh is it a good hedge against inflation would you say?

Uh you know I think you could see some of that.

Um while it's not a precious metals there there is um some aspects of the copper market and and critical materials in general that could lend itself to being an inflation hedge.

If if you just think about um the energy transition for example uh last year about $2.1 trillion was invested.

Uh that's a trend that we've seen growing fairly significantly year. um that spending is by nature inflationary as you're pumping more uh dollars into a certain market.

Um I think it really depends where you're looking at with in the industry.

If you're a manufacturer, somebody that's you know creating and manufacturing copper wires for example, uh you're going to be a cost taker.

So higher copper prices are going to hurt you.

Uh we tend to look upstream in the supply chain again to those pure play miners. uh in that case we expect them to benefit from higher copper prices as they pull copper out of the ground.

Uh we would expect that to have positive impacts for their financial position uh with the higher copper prices.

So for that reason why we tend to focus on the upstream companies and and don't really go downstream where you have to worry about um you know you could have the narrative right that you know you expect higher copper prices or higher demand.

Uh but based on the companies you're investing in, they might be price uh takers and and subject to higher prices and and the negative consequences of that.