If 2020 was the year for gold, 2021 is shaping up to be the same for copper.
Copper futures hit an eight-year high on Wednesday, trading as high as US$3.84 a pound on the CME. The industrial metal is being driven higher by rebounding global demand, a tightening supply picture and speculative bets tied to copper’s promise as a green-energy constituent of a low-carbon future.
New highs in the price of copper come after the metal hit multiyear lows early in the pandemic, as investors feared COVID-19 would devastate the world economy. But since then, copper has defied the naysayers, rising by more than 80 per cent.
Dennis Gartman, former editor and publisher of The Gartman Letter, a daily market commentary, said the parabolic rise in copper is part of a broader surge in commodity prices globally.
That dynamic has seen crude oil, lumber, wheat, corn and cotton rally based on an avalanche of worldwide fiscal stimulus spending aimed at jumpstarting moribund economies out of the COVID-19 deep freeze.
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