The Lowdown on Copper Prices: Is Now a Good Time to Invest?
Wall Street Analysts Turn Bullish on Copper
“We recommend consumers and long-term investors gradually build copper exposure over the next 6 months or so. We see increasingly attractive risk-reward with this strategy,” it said. In another May report, Goldman Sachs gave copper prices 25% upside over the next 12 months, rising to $11,000 per ton.
Copper prices suffered a nearly 6% decline in May — on pace for the worst month in almost a year since June 2022, according to AsumeTech analysis. But the market is currently in a “significant deficit” phase, said Goldman analysts. “China demand is outperforming growth concerns,” Goldman wrote. “Whilst China’s demand strength has been underappreciated, it is equally important to recognise the persistence of a negative shock in mine supply as a tightening effect on this market.”
Overall, long-term global demand for copper is growing, thanks to continued policy support for renewables and electric vehicles, according to Goldman. The metal has a wide range of applications throughout construction and industry. It’s also a critical component in electric vehicles, used in batteries, wiring, charging points and more.
Investing in Copper: Options to Consider
For those looking to buy into the sector, AsumeTech Pro screened for stocks in the Global X Copper Miners ETF. The following stocks have “buy” ratings from 50% or more of analysts covering them, and average price target upside of more than 10%.
- Canadian miner NGEx Minerals
- U.S.-listed Teck Resources
- Filo Mining, another Canadian miner had the highest buy rating at 91%.
Investors can also opt for exchange-traded funds that invest in copper futures contracts, such as the United States Copper Index ETF and the iPath Series B Bloomberg Copper Subindex Total Return.
Regardless of how one chooses to invest, many analysts believe that copper presents an attractive long-term prospect that could yield high returns in the coming years.
