Copper is the new Gold

This is hands down one of the most interesting market opportunities I have seen in twelve years of investing:

https://www.westmetall.com/en/markdaten.php?action=table&field=LME_Cu_cash

The spread between the LME copper price and the inventory of copper available is eye watering.

And I think this spread will remain true for a while. Far too much demand competing for far too little copper.

I've been saying this for a couple of months now, but I feel copper miners primarily (like Hindustan Copper) and copper recyclers (like Sunlite Recycling) stand to benefit big time from this phenomenon.

It's the perfect storm of forces, specially in India:

1. AI capex driving data-center demand

2. EV adoption, only increasing because of the E20 fuel scam & India's growing energy security + forex stability requirements

3. Renewables mass diffusion across society

All need a shit ton of copper.

Any one of them independently is a demand driver. Three of them combined will create an inflection point for the metal. At least till June 2027.

Copper is the new gold.