The long-anticipated shortage of copper is now a reality, confirms a recent report by Bank of America. According to Francisco Blanch, there are two ways of investing in copper: directly through products such as copper ETFs, futures contracts or commodity indices, or indirectly by buying shares in copper-related companies. Bank of America recommends a selection of stocks for those wishing to gain exposure to this sector.
Blanch expects the price of copper to rise by at least 30% over the next 12 months, mainly due to inelastic demand for the metal. This demand is being driven by the need to build and upgrade power grids and data centres, projects that must go ahead regardless of cost. The transition to renewable energy and the growing adoption of electric vehicles are also contributing to this demand, making copper an increasingly valuable asset in the current energy transition.
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