A year into the red-hot bull run in industrial metals that’s lifted copper to record highs, investors are still piling in, staking billions of dollars that it won’t run out of steam any time soon.
The word from Wall St. is “don’t stop buying now,” with Goldman Sachs Group Inc. and Bank of America Corp. among those advising investors to load up in anticipation of a long-term rally fueled by the world’s recovery from the pandemic and a spending splurge on renewable-energy and electric-vehicle infrastructure.
Copper’s already doubled in the past year to more than $10,000 a ton, and Bank of America says $20,000 is possible if supply falters badly while demand surges. Copper extended its surge on Monday, rallying as much as 3.2% to a record high of $10,747.50 a ton.
The rally marks a revival for an area that languished for years, and has turned more people on to investments long viewed as unattractive.
In futures markets, investors have already heeded the call, with speculative bets in London and New York copper contracts hitting historical peaks during the red metal’s dramatic ascent.
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