A New Bull Market In Copper Starts Now

“You’re going to need a telescope to see copper prices in 2021”

That’s how mining magnate Robert Friedland sized up the coming copper boom.

He’s not alone either.

Goldman Sachs recently said copper is its “favorite” commodity.

Copper is already moving too.

Copper posted its best quarterly price move in over a decade.

Odds of a downturn are low. As Bloomberg recently noted, “[copper] supply worries mount.”

The Dirty Secret About Commodity Investing

Before we get to the current state of copper, and the emerging supply and demand gap, you should look back at one of the most lucrative commodity bull runs in history.

Specifically, the oil boom of the early 2000s.

Because understanding that is the key to really making the most out of any coming copper boom.

The oil boom was one of the greatest commodity bull markets ever.

Oil prices ran from less than $10 per barrel to a peak of $147.

At the height of the oil boom, we heard about “Peak Oil”, where otherwise sensible people would warn about the world running out of oil.

It all inevitably turned into a bust, as high oil prices led to major technological developments. This, in turn, brought new supplies onto the market.

But there was something within the oil boom that most investors never realized.

That is how small the oil boom actually was.

Consider this.

Back in 2001, when oil was around $10 per barrel, the world consumed 75 million barrels per day.

By 2008, global oil consumption rose to more than 85 million barrels per day.

That was a 13% growth in demand over seven years.

Yet, it was enough to fuel a 1000% rise in oil prices and send dozens of oil stocks soaring higher and faster than oil prices.

The key to know about investing; it takes years for new supplies to be brought online.

As a result, a little bit of extra demand can send prices soaring, rapidly increase the value of companies with big stores of the commodity, and exponentially increase the value of early investments.

That increased demand is coming to the copper market, while the largest copper producing mines have been in production for decades and are aging fast.

The future of copper is as bright as it has been in a long time.

But its still early in this potential long-term bull market and its time to start looking at how to best get positioned for any run-up in copper prices.

Supply & Demand Is Both Good For Copper

Commodity prices are driven by supply and demand. Everything else is just noise.

When it comes to copper, we have a near perfect foundation for a bull market – rising demand and falling supply.

First, the demand.

Copper is mainly used in electrical wires, plumbing, construction, industrial engines, and other things that make the modern world work.

Recently, however, a new, growing, and soon-to-be major source of copper consumption has arrived – electric vehicles.

The Copper Development Association says that every hybrid electric vehicle 132 pounds of copper and every fully electric vehicle contains 183 pounds and copper.

That’s a lot of copper, and, in the future, it is going to be a huge source of copper demand.

Electric vehicles aren’t the future anymore. They are here and they are growing by the millions each year.

Tesla is targeting production of 500,000 vehicles this year.

Toyota sells more than six million Prius’ per year.

Mercedes, Audi, BMW, Ford, and the rest are rolling out hybrid and fully electric vehicles over the next few years.

Each one of those electric and hybrid cars is going to need copper. A lot of copper. And it’s going to be a huge driver of copper consumption in the years ahead.

This level of surging demand alone would be enough to get started buying copper plays right now.

In this case, it’s only part of the unfolding copper situation.

Supply is the other side of the copper market.

Today, that’s not looking like it’s going to be able to keep up with current demand more than another year or so, let alone future demand.

Take a look at this chart from mining researchers and engineers at Wood Mackenzie.

It shows the copper supply/demand and massive undersupply situation in the copper market.

This is because the major sources of copper – major mines around the world – are old and in decline.

Copper Production and Primary Demand

Just look at the average grade of copper coming out of these mines.

It is low and getting lower.

All types of mines are in steady decline.

Invest in Copper

How To Invest In Copper In 2020

If there were no large, new sources of demand, the supply situation in copper could be enough to drive copper prices higher.

But the two sides together – rising supply and declining demand – the potential for copper right now is explosive.

A copper bull market is coming and, based on previous commodity bull markets, you won’t want to miss out on it.

Looking ahead, we’ll identify a few of the highest potential ways to invest in copper and see the exponential returns this kind of bull market can offer.

Dear Retail

Are You Ready For The Next Market Move?

“Warning Signs” – Goldman Sachs
Yale’s Crash Confidence Index Higher Than Dot-Com Bubble Top
Crucial New Research: Three Fortune-Protecting Rules For Even The Toughest Markets
  • This field is for validation purposes and should be left unchanged.


SECURITIES HOLDINGS: Dear Retail Corp. or its affiliates (“Dear Retail”) may hold, as well as purchase and sell, the securities of this profiled company before, during and after the time that Dear Retail publishes favorable information about the profiled company. The purchase and sale by Dear Retail of securities in this profiled company may cause: (a) a decline in the price of the profiled company’s stock due to such selling activities, (b) increased volatility due to such buying and selling of the profiled company’s stock and (c) permit Dear Retail to make substantial profits while it is profiling this company, yet may result in a diminished value or loss for readers of this publication who invest in this profiled company.

The content in this publication is a snapshot that provides only positive information on the profiled company. Dear Retail does not and will not publish negative information about the profiled company. Accordingly, readers should consider the information to be one-sided and not balanced, complete, accurate, truthful or reliable.

Frequently companies profiled in Dear Retail’s publications experience a large increase in volume and share price during the course of this awareness advertising and marketing campaign, which increase in volume and share price often ends as soon as this awareness advertising and marketing campaign ceases.

NOT AN INVESTMENT ADVISOR AND NOT INVESTMENT ADVICE. Neither Dear Retail nor anyone involved in this publication is a registered investment advisor, broker-dealer or securities professional or associated with a registered investment advisor or broker-dealer. You understand that the information presented in this publication is provided for informative purposes only and that no content constitutes or should be treated as a recommendation to make any specific investment or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

RISK OF INVESTING. Investing is inherently risky. Readers must consult with their own investment advisor before making any investment decisions and should understand the risks associated with an investment in the profiled company’s securities, including, but not limited to, the complete loss of your investment. You must be aware of the risks and be willing to accept them in order to invest in any type of security. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to buy/sell securities. No representation is being made that any reader will or is likely to achieve profits similar to those discussed in the publication. The past performance of any security is not necessarily indicative of future results. Dear Retail does not guarantee that the profiled company mentioned in this publication will perform as it expects, and any comparisons that have been made to other companies may not be valid or come into effect.

ALWAYS DO YOUR OWN RESEARCH TO CONFIRM THE ACCURACY OF ANY INFORMATION IN THIS PUBLICATION AND CONSULT WITH A LICENSED INVESTMENT PROFESSIONAL BEFORE MAKING ANY INVESTMENT. This publication should not be used or relied upon as a basis for making any investment and never invest purely based on Dear Retail’s publications, newsletters or website. You must obtain more specific or professional advice before taking, or refraining from, any action or inaction on the basis of the content on this publication.

INFORMATION PRESENTED: THERE CAN BE NO ASSURANCE THAT CONTENT IN THIS PUBLICATION IS ACCURATE OR WITHOUT ERROR. ANY PERSON WHO MAKES USE OF SUCH CONTENT AFFIRMATIVELY ASSUMES ALL RISKS FROM USING THE CONTENT. Dear Retail has not thoroughly investigated the background of the profiled company. Dear Retail does not guarantee the timeliness, accuracy, or completeness of the information on Dear Retail’s website, in its newsletters or in this publication. Such information is collected from public filings (including without limitation, www.sedar.com and www.sec.gov) and other sources deemed to be reliable, such as the profiled company’s website and press releases, and is provided “as is” in good faith, but has not been independently researched or verified and is not guaranteed to be correct.
DISCLAIMER FOR FORWARD-LOOKING INFORMATION: In addition to historical information, this publication contains forward-looking statements, which are forward-looking and prospective in nature. The words “will,” “expects,” “could,” “would,” “may,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “targets,” “estimates,” “looks for,” “looks to,” “continues” and similar expressions, as well as statements regarding a third party’s focus for the future, are generally intended to identify forward-looking statements. Each of the forward-looking statements made in this publication are based on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. Although Dear Retail believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Forward-looking statements in this article include statements regarding the future business plans of the profiled company and include the following statements: [insert forward looking statements]. In addition, factors that might cause or contribute to such differences include, but are not limited to, those disclosed by the profiled company in their public securities filings found on www.sedar.com. You should carefully review the risks described therein. You should not place undue reliance on these forward looking statements, which speak only as of the date such statement was published. Dear Retail undertakes no obligation to publicly release any updates or revisions to the forward-looking statements or reflect events or circumstances after the date of their publication, except as required by law.

INDEMNIFICATION/RELEASE OF LIABILITY. By reading this publication, you agree to the terms of this disclaimer and the terms and conditions set out in Dear Retail’s Website Agreement – Terms and Conditions of Use which can be found at www..com. You agree to release and hold harmless Dear Retail from any and all liability, damages, and injury that may be caused from the information contained in this publication. You further warrant that you are solely responsible for any financial outcome that may come from any investment decisions that you make.

Comments are closed.