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2025-10-31 15:56:18
[Copper-Gold Ratio Hits 50-Year Low; Jefferies Bullish on Copper Price Mean Reversion] ⑴ The copper-to-gold price ratio has fallen to its lowest level in the past fifty years, more than two standard deviations below the historical average. ⑵ Jefferies points out that this historical anomaly strongly suggests that copper prices, denominated in gold, are severely undervalued. ⑶ With copper prices relatively cheaper than gold, some degree of mean reversion is inevitable. ⑷ The primary driver of this correction is expected to come from copper prices. ⑸ Based on the current valuation gap, Jefferies believes the outlook for copper prices is bullish and expects the valuation gap to gradually narrow.
