Higher Beta
A ‘higher beta’ means that when gold rises 1%, silver might rise 1.5% to 2%, and conversely, when gold falls, silver tends to fall even faster.
Inflation Hedge
Historically, copper has shown a positive correlation with inflation, making it an attractive inflation hedge.
Price Elasticity
The characteristic of some assets where their demand or supply is highly sensitive to price changes.
Safe Haven
Certain currencies and assets are considered ‘safe havens,’ attracting investment during periods of global economic uncertainty or market volatility.
Soft Commodities
These are agricultural products that are cultivated or grown.
Supply Shock
A supply shock occurs when the reduced influx of new supply, combined with sustained or increasing demand, pushes prices upward.
Uncorrelated Or Negatively Correlated Performance
A primary attribute of a safe haven is its tendency to move independently or in the opposite direction to the broader market.
Weather Premium
Reflects the market’s anticipation of potential adverse weather events and their impact on future supply.
Weather Seasonality In Soft Commodities
Refers to the recurring price fluctuations driven by predictable, annual climatic events impacting agricultural production.