BenjiFutures

The case for Copper

Long
COMEX_MINI:QC1!   E-mini Copper Futures
I don't normally invest in metals, but I am making an exception for copper . The price of copper cannot go down in the near future for two main reasons:

1. Supply and demand
2. Inflation /Economic Strain

The supply and demand side looks like this:

There are three principle users of copper currently, they are:
  • Electric component/part manufacturers (think copper wire)
  • Plumbing component manufacturers ( copper pipes and fittings)
  • Industrial alloy manufacturers

The economic strain caused by inflation and poor monetary policy cannot be overlooked. At the same time that Copper is becoming harder to find in abundance cheaply, the underlying economies which support these mining efforts is undergoing what I see as a fundamental shift. To expand on this, consider the raw indicators of inflation (not the falsified Government provided ones). A quick review of the World Bank's "Pink Sheet" list of commodity prices *globally* reflects this issue.

I recommend a starter position on Copper to the up-side. Copper is a very slow moving instrument, so you will likely find better returns elsewhere, but this is one metal which has historically been needed and with the push for electric vehicles, and new power generation technologies, demand alone will cause the price of copper to appreciate over the years to come.

Pinksheet list (remove spaces): https: //www.world bank. org /en/ research/commodity- markets

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.