Why Copper is in a Unique Position Right Now

Yeah, copper.

Uh, very interesting one because you have traditional uses for copper.

It's tra traditionally been pretty correlated with the market cycle.

It's been called doctor copper because it can kind of indicate uh what the what's going on with the business cycle.

But now not only do you have more copper uh uh needed uh for traditional things like infrastructure manufacturing and like and those kind of things around the world but you have new demands from AI and uh even without AI data center buildouts and all of all of these things and electrification as you mentioned and so there's this growing demand for copper meanwhile there has not been enough copper supply brought into the market over the last 10 to 15 years and it takes a long time to bring new supply into the market.

So, uh, a couple weeks ago, there was a big correction in US copper prices simply because of a change in tariff policy that the Trump administration announced.

People had expected, uh, US prices to rise quite a bit.

They or I'm sorry, there was a there was a premium relative to overseas prices of copper.

Uh, Trump administration decided not to put that premium on.

Uh, prices dropped by about uh, 25% but back up a little bit from there.

But the key thing is that that's really potentially created a good entry point.

Uh the demand story for copper and the supply uh pending supply shortage has not changed.

So I think the fundamentals are still in place.

Um a downturn in the economy, the global economy can uh impact copper uh and and lower prices for a bit.

But we think long term over the next few years and and even beyond uh copper demand is going to exceed supply and it may do so by uh by a wide margin.