From Ian Cooper,Editor, “Trade Alert 365”
Supply-Demand Fiasco Could Send Copper to $15,000 Per Ton
Copper prices could see higher highs.
With the economy recovering, and hopes for a green future, the world needs as much copper as it can get its hands on.
Unfortunately, there’s far more demand than supply.
The situation has gotten so bad, Goldman Sachs says copper could rally to $15,000 by 2025.
As noted by Barron’s, “Supplies, already tight as the global economy recovers, could be further strained by a predicted fivefold rise in green energy demand in the current decade, leading to significant shortages, starting in the mid-2020s, according to a report by Goldman commodity analyst Nicholas Snowdon. He sees copper, now around $4.50 a pound, hitting $6.80 by 2025. Bank of America commodity strategist Michael Widmer thinks the price could hit $6 this year.”
Plus, according to Luke Sadrian, chief investment officer at Commodities World Capital LLP, as noted by The Wall Street Journal, “Copper prices are likely to rise to between $11,500 and $12,000 a metric ton over the next few months largely because of the economic recovery in the West. He expects further gains over the next five years given the rising demand for copper in electric-car infrastructure and other new uses of the metal.”
While you could always buy copper stocks like Freeport McMoRan (FCX), Southern Copper (SCCO), and Western Copper and Gold (WRN), take a look the Global X Copper Miners ETF (COPX), as well. With copper running, investors may not want to bet against it.
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