May 2023
Copper prices could be on the rise as demand for the metal continues to grow. Here, Newton Investment Management portfolio manager Al Chu explains why there may be opportunity in the metals market.
When some people look at a penny, they may think it’s essentially worthless – tossing the coin into a fountain or even the trash. However, pennies are coated in a material that is becoming increasingly valuable.
Copper is used for everything from electrical wiring and plumbing to industrial machinery. The wide range of uses could push copper prices upwards, possibly making the metal the next oil of investing, according to Chu.
“If we think about decarbonization, whether it's EV or smart grid or solar or wind, the one material you need is copper,” says Chu.
Copper isn’t the only metal that could be in short supply, notes Chu, pointing out that the metals market in general may be poised for growth.
“When I see the 10, 20, 30-year trend, the generational shift that we see in the metals market, it's not just copper, it's aluminum, it's lithium, it's nickel, it's cobalt, it's the immense amount of metals and materials you need to decarbonize or to undergo indigenization,” says Chu. “That is going to be one of the most attractive areas going on in the in the near term and in the future.”
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