Copper has gained 26% so far this year and this week hit $9,758 a tonne, its highest level since the summer of 2011. Copper got a big boost last year from Chinese infrastructure building. Now the US is following suit, says Myra Saefong for MarketWatch. Joe Biden’s $2.3trn infrastructure package and green energy plans will require massive quantities of copper wiring.
The virus also accelerated the advent of the digital economy, says Rob Haworth of U.S. Bank Wealth Management. “Semiconductors, data centres and cellular towers” all need copper. Supply is not rising fast enough to meet demand. Miners have underinvested in new capacity in recent years and developing new mines is a lengthy process.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Analysts at Goldman Sachs recently declared copper to be “the new oil”. The bank thinks that mass electrification could see demand for the metal rise by “up to 900%” come 2030, depending upon how fast green technologies are adopted. Commodities trader Trafigura thinks the metal could trade as high as $15,000 a tonne over the coming decade.
-
Rail fares to be frozen for first time in 30 years – how much could you save?Chancellor Rachel Reeves will use her Budget to freeze rail fares but the savings could be offset by tax rises
-
Circle sets a new gold standard for cryptocurrenciesCryptocurrencies have existed in a kind of financial Wild West. No longer – they are entering the mainstream, and US-listed Circle is ideally placed to benefit
-
Circle sets a new gold standard for cryptocurrencies
Cryptocurrencies have existed in a kind of financial Wild West. No longer – they are entering the mainstream, and US-listed Circle is ideally placed to benefit
-
8 of the best converted industrial properties for saleThe best converted industrial properties for sale – from a Victorian railway station in Norfolk to a Grade II-listed former water tower with views of the River Alde
-
More clouds gather over renewable energy trusts – is there any hope for the sector?The outlook for renewable energy trusts has gone from bad to worse this year, with the industry being caught in a 'perfect storm'
-
Should ISA investors be forced to hold UK shares?The UK government would like ISA investors to hold more UK stocks – but many of us are already overexposed
-
Why Scotland's proposed government bonds are a terrible investmentOpinion Politicians in Scotland pushing for “kilts” think it will strengthen the case for independence and boost financial credibility. It's more likely to backfire
-
Who is Jared Isaacman, SpaceX astronaut and Trump's pick as NASA chief?Jared Isaacman is a close ally of Elon Musk and the first non-professional astronaut to walk in space. Now, he is in charge of NASA
-
Three solid British stocks going cheapOpinion Ian Lance and Nick Purves, fund managers at Temple Bar Investment Trust, highlight three British stocks with strong cash flows and robust balance sheets
-
Is now a good time to invest in Barclays?Barclays' profit growth is healthy, and the stock is cheap compared with its rivals
