Rabu, 03 Juni 2026

Buy This Ahead of the Copper Supercycle

Before copper heads any higher, buy this.
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June 3, 2026
Bite Into Profits in the Coming Copper Crunch

Dear Subscriber,

by Sean Brodrick
By Sean Brodrick

In mid-April, I wrote a column titled The Perfect Storm for Copper Prices.

Turns out I was too pessimistic about copper prices and too optimistic about copper supply. 

The coming copper supply/demand crunch is going to be so much worse!

I’ve told you that copper is a critical metal, sitting at the center of virtually every major industrial trend shaping the global economy. 

It is the metal of electrification, artificial intelligence, power grids, electric vehicles, renewable energy and modern infrastructure.

Every one of those trends is growing.

The problem is that copper supply is not.

According to the International Energy Agency, the current project pipeline of this critical metal is nowhere near sufficient to meet future demand. 

If nothing changes, the world could face an implied copper supply shortfall of roughly 30% by 2035.

 

That’s a picture of a copper supercycle in the making.

Traditional commodity markets move through booms and busts. 

High prices encourage new production, supply catches up and prices eventually fall. 

Copper is increasingly breaking that model because the industry cannot keep up with rising demand.

Demand-Side Drivers

Demand driver #1: The global power grid overhaul now underway.

Utilities around the world are investing hundreds of billions of dollars to modernize aging transmission networks, connect renewable generation projects and expand capacity to meet rising electricity consumption.

High-voltage transmission lines, transformers, substations and distribution equipment all require enormous amounts of copper.

Demand driver #2: The rapid AI infrastructure buildout.

Data centers are becoming some of the largest consumers of electricity on the planet, forcing utilities to build new generation, transmission and backup power systems. 

Every new gigawatt of electrical capacity ultimately translates into more copper demand.

Demand driver #3: The broader electrification trend

Wind turbines, solar farms, battery storage systems and electric vehicles all require substantially more copper than their conventional counterparts.

Taken together, these trends are expected to push global copper demand from roughly 27 million tonnes in 2024 to approximately 34 million tonnes by 2040.

Unfortunately, the supply side of the equation looks far less encouraging.

Bringing a copper deposit from discovery to commercial production takes an average of roughly 17 years. 

At the same time, average copper ore grades have fallen roughly 40% since 1991. 

Miners must move and process significantly more rock to produce the same amount of metal. 

That means mining costs are rising.

On the exploration side, only about 5% of all copper deposits discovered during the past 35 years were found within the last decade. 

In other words, the industry's replacement pipeline is shrinking just as demand is accelerating.

The Sulfur Crisis

To all this, we can now add more fallout from the blockage of the Strait of Hormuz due to the war with Iran. 

Sulfur is produced as a byproduct of oil and gas production.

The Persian Gulf states ship sulfur to countries including China, Chile, the Democratic Republic of Congo and Zambia, where it is used for copper mining.

The longer the blockade in the Strait drags on, the more we’ll see an extra-hard squeeze on copper supply.

The world isn't running out of copper. But if demand continues to rise while supply growth remains constrained, prices don't need an outright shortage to move sharply higher. 

They need a market that struggles to keep up.

Look at that first chart again. We’re looking at elevated copper prices for YEARS.

How to Play It

I’ll make the same recommendation that I did in April: The Global X Copper Miners ETF (COPX)

It holds a global basket of miners, including Freeport-McMoRan, BHP, Southern Copper and Zijin.

Since miners are leveraged to the metal, this can amplify gains. 

The fund has an expense ratio of 0.65%.

 

You can see COPX zigzagging since I mentioned it in April. 

Now, it finally seems about to break out.

Sure looks to me like copper and copper miners have a bright and shiny future. 

You should pick some up before the blast-off really begins.

All the best,

Sean

P.S. In case you missed it, my colleague Chris Graebe held a special event yesterday showcasing a SpaceX partner that, too, is pre-IPO. But you can actually buy this one before it does. Watch the replay here.

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Selasa, 02 Juni 2026

The SpaceX filing just happened. You've got days.

21 banks are preparing to underwrite what could be the biggest IPO in Wall Street history  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌
 

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