Out of the cave

Copper has been in a bearish market for the past five years, but it’s ready to get out of the cave. It’s on the verge of heating up.
The World Bank (WB) projects that copper prices will start rising in 2017, reaching USD 4,866, and moving to USD 5,092 in 2018 and USD 5,329 in 2019.
Copper is a precious metal unlike silver and gold. It’s the most versatile metal that exists today.
It’s a very efficient conductor of electricity, and it’s used for heating, plumbing, roofing, computers, cars, mobile phones, air conditioning, adapters, wiring, electrical leads, motors and lighting units, and transformers… it’s used almost everywhere and has been a part of the development of humankind for thousands of years.
It has such a high commercial and industrial importance that you’ll never see its price fall to zero.
It’s no secret that we’re starting to rely on alternative ways to provide a cleaner world, and copper will play a huge role in the advancement of technology and our society.
Just take a look at electrical vehicles...
According to Bloomberg, these vehicles will hit 41 million in sales by 2040.
And you might be wondering, what does this have to do with copper? Well, it takes three times the amount of copper to build these vehicles as it does gas-powered vehicles.
Automakers will need at least three times more copper than ever before.
Demand will be high. And it’ll get even higher.
According to International Copper Study Group (ICSG), the market will be very close to a supply-demand balance in 2016 and 2017, and China is expected to be the biggest contributor to that supply and demand growth. Demand will increase 1.8% in 2017.
This is exactly what the copper market needs to get out of the slump it’s been in for the past few years.
A higher demand will create an upturn in the market and increase prices as predicted by the World Bank.