“The setup is there for what could be the strongest bull market really in the history of copper,” said Gianni Kovacevic of CopperBank Resources.
Copper’s rising price has brought it into focus this year, and the Biden administration’s recently announced US infrastructure plans have further stoked interest in the red metal.
So what’s in store as 2021 progresses? Speaking to the Investing News Network, Gianni Kovacevic said he sees a bright future as copper demand increases and supply struggles to keep up.
“Copper is going through a once-in-a-hundred-year pivot with this global transition to electrification,” he said. “The Green New Deal and on top of that the restimulation of the global economy, which is now well in excess of US$10 trillion dollars — they all help copper.”
Putting future copper demand into perspective, Kovacevic, who is the CEO of CopperBank Resources (CSE:CBK,OTC Pink:CPPKF), said that currently 75 percent of copper goes toward creating, transmitting or utilizing electrical energy, and the need for electrical energy is only going to increase moving forward.
“We need more copper in the next 20 years than was installed in the last 130 (years),” he explained.
In terms of what that could mean for prices, Kovacevic said that the current copper bull market is in seventh place compared to the last 10 copper bull markets.
“We’re (only) 10 months in. There’s also an unprecedented wave of new demand coming for copper — so this is interesting. Could this actually be the biggest bull market for copper in history? I think certainly it’s plausible,” said Kovacevic, who is also the author of “My Electrician Drives a Porsche?”
He believes the market is nowhere near the “mania” phase, which would be characterized by higher share prices for copper companies, including CopperBank.
“The copper price will be stronger for longer,” Kovacevic said. “Trafigura, one of the largest copper traders in the world, is suggesting to investors to anticipate US$12,000 to US$15,000 a tonne for copper … that is going to be a euphoria and that will end in a mania, (but) we do not have that mania yet. The last time copper was US$4, these stocks were all much higher.”
Watch the video for more from Kovacevic on copper supply, demand and the metal’s overall outlook.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.