The Red Hot Copper Trade šŸ”„

The Red Hot Copper Trade

The home building and commercial construction sectors have a clear dependence on ā€˜Dr. Copper,ā€™ making its chart an investorsā€™ go-to gauge of world trade and gross domestic product (GDP) growth. Dr. Copper has stormed back from $2 to $2.60 per pound in three months, but analysts insist itā€™s still too early to take gains. The metal might be bucking a ten-year downtrend to hit new all-time highs.

If you believe electric cars are the future, so is copper. If you believe 5G networks and renewable power generation is the future, so is copper. The pandemic has knocked back legacy technologies and accelerated stimulus packages for digitalization and eco-solutions. This could ā€œherald a boom in demandā€ for copper, according to the Eurasia Group.

It ainā€™t a quick trade to flip, though, a get in-get out play. Itā€™s a long-term diversification into commodities. The red metal is a hard asset, so it will shield you from inflation over time, and move based on expectations of supply and demand. Itā€™s mined in Chile and the United States, and exported very heavily to China. Respective currency exchange rates also matter.

Bank of America has a price target of $6,250 per ton of copper, supported with projections of ā€œmore purchases of raw materialsā€ on a global front post-corona. Eurasia Group is also bullish, claiming that while 1% of copper demand comes from electric cars now, it will be 10% in ten years (as we said, a long-term investment!). ā€œWelcome to the age of copper!ā€

Share:

More Posts

What is a kids brokerage account?

23 March, 2023

A kid’s brokerage account is more accurately called a custodial account. This is a brokerage account that parents or legal guardians can open on behalf of their child.

Poll: Bailing Out the Banks šŸ¦

23 March, 2023

This week, we asked the Invstr Community, “Do you think the government should have stepped in and covered all deposits over the FDIC limit of $250K at Silicon Valley Bank?”

Load More
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Facebook Twitter Youtube Instagram Snapchat Tiktok
learn
products
plan
Who we are
blog

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr VisaĀ® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community.The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results.Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such.Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.