Let's Start Building That Copper Portfolio
Investment advisor Marin Katusa publishes great, chart-rich position papers. This morning he did a mailing titled Copper’s Quiet Takeover, which is a great jumping-off point for building the copper miner portfolio I’ve been promising for a while.
Katusa’s take is that copper is overshadowed by flashier assets like gold and Bitcoin, but shouldn’t be:
Amidst this glitz and glamour, copper, the humble workhorse of the metals market, has been largely overlooked.
Despite its crucial role in driving innovation and powering the green revolution, copper remains an unsung hero - a hidden gem waiting to be discovered by a whole generation of investors.
…Here are the different segments of copper demand:
Old World – This represents current demand and low growth potential.
Infrastructure, Heavy Equipment
Real Estate
Modern World – This represents new demand and high growth potential.
Energy Transition – phase out of inefficient, dirty power generation, transportation, and storage.
Electrification of Transportation Systems: passenger and commercial vehicles
Katusa expects old-world copper demand to persist while modern-world uses grow faster than most people expect, straining supplies and driving higher prices and potentially massive capital gains for the owners of the best copper miners.
Here’s a chart showing projected copper demand from the energy transition toward wind, solar, and battery storage.