Is COPPER a Good Investment in 2021?
Two years ago, I made a video saying that Copper $COPPER is a better investment than gold $GOLD $GLD or Silver $SILVER and I was right since Copper outperformed both of them. I invested in copper miner, Freeport-McMoran $FCX and it has been my second-best investment in the past 2 years after GameStop.
Copper is a metal that does well in economic expansions as it has a wide industrial use being the second best electrical conductor. It is also used in construction. Inflation is also good for copper. Current macroeconomic conditions seem to favor higher copper prices.
Demand for Copper is also increasing because of 5G, Electric Vehicles and renewable energy. An EV uses 4.5X more Copper than an ICE car.
Demand for copper is increasing but supply is not increasing that fast and looking at current inventories, we're seeing the beginning of a supply gap. With higher demand and low supply, copper prices are expected to rise.
Like with any other commodity, copper prices are volatile and I would rather invest in a copper miner where returns can be higher and there is actual cashflow. That's why I've invested in Copper miner, Freeport-McMoran.