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Hard Assets
Copper/Gold Ratio
Definition
The ratio of the price of copper (the "Dr. Copper" growth proxy) to the price of gold (the defensive "fear" proxy). This ratio is used as a real-time barometer for global economic health and inflation expectations. A rising ratio indicates growth and reflation; a falling ratio suggests a cooling economy or rising systemic risk.
Formula / Calculation
Copper/Gold Ratio = Copper Futures Price / Gold Spot Price
Why It Matters
Bond yields (specifically the US 10-year Treasury) have a strong historical correlation with the Copper/Gold ratio. If the ratio is falling while yields are rising, it signals a "policy mistake" or a disconnect between market rates and real economic momentum.
Related Metrics & Intelligence
Related Concepts
M2/Gold Ratio
A macro valuation metric comparing total global M2 money supply to the market capitalisation of all above-ground gold (estimated ~212,582 tonnes × spot price). The ratio measures how much fiat currency has been created relative to the finite stock of hard money in existence. When M2 expands faster than gold's market cap — through QE, fiscal monetisation, or credit creation — the ratio rises, signalling fiat debasement without corresponding hard asset appreciation. When gold outpaces M2 growth, the ratio falls, marking a re-rating phase where gold recovers its monetary coverage. Historically, ratio extremes in either direction have been followed by multi-year mean-reversion, making it one of the most reliable long-horizon gold valuation frameworks available to macro allocators.Debt/Gold Z-Score
A proprietary ratio comparing total US Federal Debt to the dollar value of US officially-reported gold reserves at current spot prices, normalised as a Z-score against a 25-year rolling window. It measures how many "gold equivalents" the US government would need to redeem its entire debt — a thought experiment derived from the classical gold standard era.Gold/Silver Ratio
The number of ounces of silver required to purchase one ounce of gold at current spot prices. The long-run historical average is approximately 55–65x. Extreme readings above 90x have historically—in 1991, 2003, 2009, and 2020—preceded significant silver outperformance as the ratio mean-reverts. Industrial silver demand growth (solar panels, EVs) creates an additional structural tailwind.Track Copper/Gold Ratio live
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