Serabi Gold's Hidden Copper Angle Ignored in London Metals Rally

Serabi Gold's copper exposure has been overshadowed by its gold production in London's metals rally, but it may be worth looking closer at.

Copper set a fresh record earlier this period while gold stayed close to record territory. The London Stock Exchange is shut on Monday for the UK summer bank holiday, deferring the market's response.

The company's Brazilian-focused gold operations produce copper alongside gold, and the copper is sold rather than discarded. This means that the revenue from a shipment moves with two commodity prices instead of one.

In most periods, those two prices behave differently because gold responds to rates, currency, and fear while copper responds to industrial demand and supply disruption.

This week was not a normal period as both sides of the revenue equation were working at once. Copper reached a fresh record driven by industrial and electrification demand, while gold sat near record levels on safe-haven flows and easing bond yields.