Renewable energies, electric vehicles, and the expansion of power grids, which is being pursued on a massive scale, particularly in the US and China, all require copper. Estimates suggest that copper demand will rise by 50 percent by 2030. In addition, many copper mines are already very old and suffering from declining ore grades. It takes many years for new mines to reach production, at least ten to 15 years. In the US, it takes an average of 29 years from the start of exploration to the start of production at a new copper mine. The 50 percent tariff on the reddish metal announced by US President Trump came as a shock to the copper market. On July 8, the price of copper reached an all-time high on the Comex in New York, while falling in London. If a 50 percent tariff on copper is actually imposed on August 1, the US would have to import around half of its copper requirements. The price would then tend to rise, although volatile prices are to be expected.
In the long term, however, there is broad consensus that developments in the energy transition, e-mobility, and rising demand for data centers will make copper more expensive. This is because demand will exceed supply. And even if the share of recycled copper in the global copper supply increases from the current level of around 33 percent to 50 percent, this will not be enough to meet rising demand in the future. Weaknesses in the copper market should be seen as entry opportunities. Incidentally, copper is traded in US dollars, just like gold. If the dollar weakens, copper imports become more expensive for American buyers. Investors can bet on copper with Mogotes Metals or U.S. GoldMining, for example.
Mogotes Metals - https://www.commodity-tv.com/ondemand/companies/profil/mogotes-metals-inc/ - has promising projects in Chile and Argentina that contain copper and gold. The Filo Sur copper project in Argentina appears particularly promising.
U.S. GoldMining's - https://www.commodity-tv.com/ondemand/companies/profil/us-goldmining-inc/ - Whistler project is located in Alaska, is in the resource stage and covers 217 square kilometers. It has gold, copper and silver, commodities that have risen significantly in price, and is wholly owned by the company.
Current company information and press releases from U.S. GoldMining (https://www.resource-capital.ch/en/companies/us-goldmining-inc/ ) and Mogotes Metals (https://www.resource-capital.ch/en/companies/mogotes-metals-inc/ ).
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