BORROWED from a mob i get market info fromOne way I do that is to stay in contact with those in the industry.
My favourite is Hedley Widdup.
He’s the chief investment officer of Lion Selection Group. Lion specialises in the junior resource sector.
Hedley was a geologist before he turned to managing money.
I caught up with him last Friday for a burger.
I asked Hedley which commodity he was most excited about.
The answer? Copper.
The rationale here is familiar if you follow the sector. Copper is due for a big demand lift from the switch to electric vehicles and renewable energy.
Plus, there’s plenty of existing demand from the traditional source of urbanisation and modernisation across Asia and Africa.
Where is the copper going to come from to meet all this? No one is quite sure. Copper grades are in decline.
And we know the big boys like BHP and Rio are interested in this sector.
BHP just made its big $9.6 billion play for South Australian-based Oz Minerals.
Hedley took a sip of his water and explained why he chose copper over all the other metals out there. It’s pretty simple.
The metal is not called ‘Dr Copper’ for nothing — copper is intrinsically linked to economic growth. And isn’t easily substituted.
That’s not all…
It’s a big market, so less susceptible to wild price swings (ala, some of the new-age critical metals…).
If you can find a junior with a decent copper project, the medium-term outlook to support economic growth is great
