Copper Nears 15-Month High: Check Out Why These Copper Stocks Are Skyrocketing
Bank of America's commodities team forecasts a strong copper market due to high demand from energy transitions and limited supply. They have also grown significantly optimistic about gold, expecting its price to be propelled by central banks, Chinese investors, Western macroeconomic influences, and the anticipated conclusion of interest rate increases. They predict gold could reach $3,000 per ounce by the end of 2025, surpassing its current peak by over $600.
While attention might mainly be on gold prices, investors might be more surprised to hear that copper prices have hit a 15-month high! Copper stocks have been rising higher as the price of the material continues to climb. Check out the skyrocketing copper stocks here:
Why Copper Prices Keep Climbing
• Supply Risks
Copper prices have received an additional boost following remarks from the Federal Reserve indicating a moderate stance on interest rate hikes. Compounded by operational disruptions at key mining sites, these factors exacerbate the supply risks for copper purchasers.
Considering these dynamics, companies that demonstrate robust growth and efficient copper production present attractive investment opportunities. Particularly, those unaffected by disruptions and operating in geopolitically stable regions are well-positioned to maintain steady production.
• Demand Hopes
Signs of growth in global manufacturing are sparking optimism that strong demand could push copper prices to new highs. However, concerns about China's real estate market and a prolonged seasonal slowdown are tempering expectations.
Outside China, the global infrastructure investment and the worldwide boom in artificial intelligence are seen as potential drivers for increased copper demand. The International Energy Agency predicts a 15% annual increase in global data-center power demand through 2026. JPMorgan anticipates this will create a need for an additional 2.6 million metric tons of copper by 2030, accounting for about 2% of total expected copper demand that year.
Moreover, a forecasted supply shortfall of 4 million metric tons of copper by 2030 is exacerbated by the rising demand from battery electric vehicles and renewable energy, coupled with limited new copper mining supply, according to JPMorgan.
Exponential AI computing capacity growth this decade … will require exceptional global power capacity growth," JPMorgan analysts said in a client note.
$Taseko Mines (TGB.US)$ $Southern Copper (SCCO.US)$ $Freeport-McMoRan (FCX.US)$ $Hudbay Minerals (HBM.US)$ $Teck Resources (TECK.US)$ $Ero Copper (ERO.US)$ $GLENCORE PLC (GLNCY.US)$ $Rio Tinto (RIO.US)$ $BHP Group Ltd (BHP.US)$ $S&P 500 Index (.SPX.US)$ $NASDAQ 100 Index (.NDX.US)$ $Dow Jones Industrial Average (.DJI.US)$
Source: Investopedia, The Motley Fool
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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