What Does Government Intervention in Copper Markets Mean for ETFs?

You know, the US government has recently taken equity stakes in companies like Trilogy Metals and MP Materials in order to secure domestic supply chains.

And that puts ETFs like the United States Copper Index Fund.

The ticker is CPER and USCF Daily Target 2X Copper Index ETF and that ticker is CPXR.

Uh putting these ETFs in the spotlight.

So, what do these government moves mean for the copper market overall? >> Well, the the government taking a p an interest in a private company is always, you know, it's a double-edged sword.

Um, copper being a critical uh material for US infrastructure and so many industries.

It does make sense that the government would take an interest in uh supporting that industry. globally uh over the last 15 20 years there has not been enough uh investment in capex to produce new copper.

So uh the US especially has really you know low uh produces really low amounts of copper.

We get a lot of it from South America, some from Asia, um a little bit internally.

Um it seems like as geopolitics are doing what what's what's happening that it it does make sense to try to boost uh domestic supply.

Now the troubling thing is is that it takes a long time to bring new supply online.

So it's uh smart to try to boost that.

Uh but it's a it's going to be a while before that starts to add to our portfolio of of copper as a country.

Uh demand for copper is rising. uh it's expected to outpace supply for for many many years.

So even though the government has done this um it's going to be a while before that pays off if ever uh because that copper demand is rising.

So we think the fundamental story for copper is is the demand and the fact that there's just not enough supply and new supply won't come online for you know 10 15 years.

Uh, most likely it'll start to, but to really on a meaningful level, it's going to be a while.