Copper Price Forecast: Will It Surpass Its All-Time High?

At the height of the COVID-19 pandemic, the mining industry took a major hit.

Countless operations around the world were forced to shut down, cutting off supply.

Demand for metals like copper slumped, driving down its prices.

But vaccine breakthroughs breathed new life into the mining industry.

Economic recovery efforts at the end of 2020 combined with new green technology trends sent copper prices into a massive rally.

By May 9th, 2021, copper prices reached a new record high of $10,512 per metric ton.

Since then copper prices have retreated.

Despite mining operations reopening, issues with supply persisted.

It wasn’t that the earth was running low on the red metal. Rather, miners were having trouble producing enough.

However, there are reasons to believe that copper prices can reach that peak—and surpass it.

Let’s take a look at copper’s performance in 2021 to see what a copper price forecast for 2022 might look like.

Copper Slips Below Near-Record High

After coming just short of its record high price at $10, 260 a tonne at the end of January 2021, copper prices dipped to $9,654.

Power shortages in China, the world’s third-largest copper producer, have primarily affected confidence in the copper market.

Investors believe China’s power cuts will lead to reduced copper demand for industrial use.

China’s efforts to be more eco-friendly by cutting back coal production have put many of its factories in a tight position.

High energy prices mean higher production costs, which hurts everyone involved from investor to miner.

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Copper Price Forecast: Where Next for the Industrial Metal?

Several analysts from banks such as Goldman Sachs are bullish about the copper price forecast for 2022 and beyond.

By Q4 2022, Goldman Sachs predicts copper prices to reach $12,250 per tonne.

Meanwhile, Bank of America predicts copper prices to average $9,813 per tonne through 2022.

Beyond a 2-3 year window, experts believe demand for copper will stay strong in the long term.

Clean energy initiatives, industrial demand, and the race to mass-produce electric vehicles (EVs) means the world will need more and more copper.

Why Is It a Good Investment?

Throughout history, we’ve relied on copper as a currency and for construction. The red metal’s versatility and conductive properties have kept it relevant to this day.

Here are some reasons why you should invest in copper.

The Green Revolution
Just about every piece of electronic equipment we use today relies on copper—from the device you’re reading this on, to the car you drive to work.

As the global push to end fossil fuel reliance picks up speed, investors should consider some facts about copper use in green tech.

EVs need about four times more copper than conventional cars.

Offshore wind turbines need about 28,000 kg of copper.

Renewable energy systems can use up to 12x more copper than traditional systems.

Clearly, there will be no green revolution without copper.

A Hedge Against Inflation
When you think of a hedge investment, you might think of gold first.

You’re not wrong, as gold is typically the go-to for investors worried about economic circumstances.

But copper often serves as a more accessible way of hedging against inflation.

Once things bounce back, copper prices tend to soar under recovery periods.

Of course, the copper market is rife with volatility.

Investors should be confident in their personal finances and comfortable with the risks involved before investing in copper.

If you’re trying to build out your investment portfolio, consider adding copper stocks.

It’s a great way to hedge your other investments and is often a cost-effective way to diversify your portfolio.

The key is to not invest more than you’re comfortable with losing.

It may seem obvious, but consider how volatile the copper market is.

Prices can swing both ways, so be sure that a loss on your investment doesn’t put you in danger.

On the upside, copper price forecasts look strong—all you need to do is choose the right stock.

Gateway Investment
Did you miss the copper rally in 2021?

Was it because you were unsure of investing in copper or the mining industry as a whole?

Understandably, after what happened in 2020, investors may be concerned about the health of the mining sector.

Yet, smart investors will also consider the future of the mining industry—especially copper.

Copper is a relatively inexpensive way to enter the mining industry, giving you exposure and helping you build confidence.

The Small-cap Factor
While there are plenty of copper stocks out there, we are always looking out for opportunities in the small-cap market.

Not only is the small-cap market under-analyzed, it’s also typically unavailable to most institutional investors – meaning there are some high quality stocks that are overlooked.

You can find great copper mining companies in the small-cap market—and we’re here to help.

How To Invest in Copper?

Ready to begin investing in the red metal? There are plenty of ways to profit. Below are some options for investing in copper.

Copper Stocks
Copper stocks are individual shares in a company that is mining for copper.

Typically mining companies will search for one mineral or metal, but often mine others that tend to form with a certain metal as well. For example, copper and gold are often mined together.

It’s important to note that copper stocks are not directly tied to copper prices.

Before investing in copper stocks, you need to thoroughly research the company.

Some indicators to look for include strong balance sheets with low debt.

Invest in a company that is trying to improve its process, technology, and methods to lower operation costs.

Copper ETFs
Another great investing route is copper exchange-traded funds or ETFs.

ETFs can be traded similarly to stocks.

But instead of tracking a single company, ETFs can track a sector, commodity, or asset.

Investing in copper ETFs would mean your ETF would track the price of copper.

Copper Futures
A copper futures contract is an agreement to buy or sell your copper share at a predetermined price at a specified time in the future.

You can find copper futures being widely traded on the London Metal Exchange (LME).

There’s also plenty of copper futures activity on the COMEX and Multi-Commodity Exchange in India.

Stocks To Consider

With your knowledge of how to invest in copper, it’s time to consider where to put your hard-earned money.

We recommend this small company backed by mining industry professionals.

CopperCorp (TSX.V:CPER) is a small copper mining company with major potential.

It’s backed by a legendary group in the mining industry and has staked ground in Tasmania.

Tasmania’s long history of copper mining success combined with CopperCorp’s aggressive exploration plan makes this an exciting investment opportunity.

To learn more about CopperCorp and its plans, check our report.

Smart Investing With Dear Retail Investors

Do you wish there was an easier way to find profitable investment opportunities? Stop wishing—join Dear Retail Investors today. We regularly supply our community of like-minded investors with everything they need to make smart, successful investments. From exclusive investment opportunities to impactful insights, join us and become a smarter investor.

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