Gold is up more than 25% from its December low.

But as regular Growth Stock Wire readers know, I’ve shared the reasons why silver and platinum would outperform gold in the past few months.

[ad#Google Adsense 336×280-IA]In March, an ounce of gold cost more than 80 times the price of an ounce of silver. That was the highest level in the gold-to-silver ratio since 2008.

Since then, gold has rallied 10%… But silver has jumped more than three times as much (32%).

Last month, an ounce of gold traded at a 20% premium to an ounce of platinum. That hadn’t happened from 1990 to 2015.

Platinum is almost always more expensive than gold. Gold is up 6% since my June 24 essay, but platinum has climbed 13%.

Right now, we’re beginning to see a similar relationship between gold and another metal…

The chart below shows the relationship between gold and copper since 1990.

Today, the gold-to-copper ratio sits around 600. That means for every ounce of gold, you can buy 600 pounds of copper.

As you can see, the ratio has only been this high one other time in the past 26 years – just after the real estate bubble burst in February 2009. The ratio peaked at 707. At that time, gold traded for a little more than $1,000 an ounce, while copper cost $1.42 per pound.

The ratio peaked again in October 2011, reaching 542 before starting to fall. Copper outperformed gold by nearly 35% over the next two years as gold tumbled from its August 2011 peak. Though gold dropped, copper traded 10% higher over this period.

Here’s a look at the gold-to-copper ratio since early 2015…

The ratio has climbed steadily since last May. Most of its highs have been higher than the previous ones. And its lows have been higher, too.

But we need to be careful… The chart doesn’t mean copper has turned the corner here.

The ratio has fallen from about 640 to 600 over the past week. This is promising, but we’ve seen it before. In order to confirm that copper is outperforming gold, we need to see it fall through its previous lows.

First, the ratio needs to break below last month’s low of 581. After that, the next confirmation of copper’s strength would be a break to less than the lows of 543 in March and April.

If copper is able to break through these levels, that will be our confirmation to buy into the sector. Copper producers like Southern Copper (SCCO), Freeport-McMoRan (FCX), and Nevsun Resources (NSU) will be the main beneficiaries of such an uptick.

Good investing,

Brian Weepie

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Source: Growth Stock Wire