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Goldman Sachs' Advice Precedes Copper Market Plunge

Goldman Sachs urged clients to invest in copper before a record drop following Trump's tariffs.

August 1, 2025 at 06:57 PM

Goldman Told Clients to Go Long Copper a Day Before Price Plunge

Analysts at Goldman Sachs promoted copper investments just before a major market decline.

Goldman Sachs Recommends Copper Investment Before Market Crash

Goldman Sachs Group Inc. advised its hedge fund clients to invest in US copper just a day before President Donald Trump announced steep tariffs that caused a significant price drop. On a client call, Goldman projected a 50% tariff on copper and suggested buying short-dated call options, predicting a potential surge in copper prices of 11%. This recommendation came shortly before the market faced its largest recorded decline in copper prices, highlighting a risky miscalculation amid volatile political decisions.

Key Takeaways

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Goldman Sachs advised on copper just before a market crash.

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The recommendation was based on anticipated tariff increases.

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Trump's decision led to significant losses in copper prices.

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Investors are now questioning the credibility of such advice.

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Political decisions heavily impact market stability and predictions.

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The incident highlights risks in the investment community during political shifts.

"Goldman promoted copper investments the day before a major tariff announcement."

This highlights a potentially reckless strategy by Goldman Sachs just before market turmoil.

"This incident may lead to greater scrutiny of financial advice during political shifts."

Expert analysts emphasize the need for cautious predictions amidst uncertainty.

This situation raises serious concerns regarding the practices of major financial institutions when advising clients. The rapid shift from optimism to a market collapse underscores the unpredictable nature of global markets, particularly when influenced by political actions. Goldman Sachs, once seen as a trusted advisor, may now face scrutiny over its timing and judgment in recommending such a high-risk investment without clearer caution about potential disruptions from political decisions.

Highlights

Timing is everything in finance, and this time they missed it.
A political move sent markets tumbling just after an optimistic forecast.
Goldman Sachs bet on copper, then watched it crash.
Investors face uncertainty as political actions disrupt markets.

Risk of Controversy Following Investment Advice

Goldman Sachs’ recommendation to invest in copper just before a significant market crash raises concerns about the reliability of their advice during politically sensitive times.

The implications of this event may lead to greater scrutiny of financial recommendations moving forward.

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goldman sachs copper trump tariffs hedge funds finance politics

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