Copper prices have gone ballistic.
As we noted on April 26, “With copper prices just beginning to pop on supply-demand issues, stocks like Freeport McMoRan (FCX), Southern Copper (SCCO), BHP Group (BHP), and Riot Tinto (RIO) could move aggressively higher.”
As hoped, all are pushing higher as demand continues to significantly outweigh supply.
The supply-demand situation has grown so dire, one of the world’s biggest copper traders, Trafigura Group, believes the metal could hit $15,000 a ton over the next decade. Even Goldman Sachs – which called copper ‘the new oil’ – also says copper could rally to $15,000 by 2025, as the world transitions to cleaner energy. The firm also believes annual demand for copper could skyrocket 900% to 8.7 million tons by 2030.
Plus, according to 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.”
In short, you may not want to bet against copper any time soon.