be_ixf;ym_202105 d_06; ct_50

Select Page

Copper Is the One Metal You Can’t Ignore

Copper Is the One Metal You Can’t Ignore

The price of copper is at its highest point since 2014.

The red metal’s price rose from the latter part of 2016 and all of 2017. You can see what I mean from the chart below:

copper

The shift to electric vehicles will be a major driver of this trend going forward. According to Reuters, an industry report stated that the electric vehicle revolution will drive a “nine-fold increase in copper demand” from the automobile sector.

The number of electric vehicles (cars and buses) will rise from 3 million in 2017 to 27 million in 2027. That will drive demand for the metal from 185,000 metric tons per year to 1.74 million metric tons in 2027.

The car sector will go from using less than 1% of the world’s copper supply to 7% (assuming today’s production level).

We are going to need a lot more over the next 10 years to make up for that completely new demand.

The Next Phase in Copper’s Rally

What’s more, that demand will arrive just as the world’s economies come out of a long slumber. In 2016, the world’s GDP grew at 2.44%, the lowest rate since 2009.

However, there are signs that global growth is improving.

Oil demand is up which means copper demand should be too.

There’s an old saying about copper being the metal with a Ph.D. in economics. What that means is that copper is extremely sensitive to economic growth.

If the world is doing well, demand for copper goes up. As demand rises, so does the price. And demand has been surging this year, driving copper’s stellar rally.

However, in the near future, we see a brand-new source of demand on the horizon.

If you haven’t gotten into this  market yet, you need to. This metal’s run is only just beginning.

Good Investing,

Matt Badiali
Editor, Real Wealth Strategist

 

Newsletter Sign Up

Sponsored

MEET OUR EXPERTS

WHAT READERS ARE SAYING..

“Paul, your investment research has been a godsend. Our portfolio was just a tad over two million dollars. I paid my daughter's legal fees, my wife's medical expenses, helped my wife's stepmother with home repairs, loaned our son money for real estate. I also bought two used vehicles, one for our daughter and one for our eldest grandson. All told, these expenses added up to well over a quarter million dollars. I am happy to report that we have profits left over!”

- Taylor M.

“Paul, in September of 2017, I decided to go ‘all in’ on my stock positions and follow the portfolios in your services. My account value was $335,000. As of today, it totals 1.1 million dollars! Yes, that’s tripling my money in less than 3 years.”

- Suzie M.

“Loving the 238% gain after I bought your recommendation in Sept. 2019! This week (July 21, 2020) will be my 1 year anniversary with your amazing team … thanks for the life-changing work you all do! Between all your services, 14 triple-digit gains, the greatest at 358%!"

- Matt

Share This