Column: Signs of investor vertigo as copper hits record highs – by Andy Home (Yahoo/Finance – Reuters – May 11, 2021)

https://ca.finance.yahoo.com/

LONDON, May 11 (Reuters) – Copper continues to rewrite the record books. London Metal Exchange (LME) three-month metal punched through its previous record high of $10,190 a tonne, set in 2011, to touch $10,747.50 on Monday.

Copper sits at the epicentre of the broader rally unfolding across the commodities space, which super-bulls such as Goldman Sachs say is the start of a supercycle analogous to that of the 2000s.

The metal’s usage profile affords it exposure to global manufacturing recovery, post-pandemic rebuild and decarbonisation. Whether the world’s copper miners can meet that demand is a moot point, given chronic past underperformance and a lengthening list of supply threats.

Chile, the world’s largest copper producer, is facing both short-term disruption from labour negotiations and long-term disruption from a planned increase in mining royalties.

Such headlines inevitably add more fizz to an already heady bull cocktail, which has lured some funds into fresh bets on higher prices.

For the rest of this article: https://ca.finance.yahoo.com/news/rpt-column-signs-investor-vertigo-010000882.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuYmluZy5jb20v&guce_referrer_sig=AQAAAMaW9q8o3breGROU4E0jyJXP-uDXRC0A66kZUyQB7a6vtAxRrureFP5I4xDnbacNeIFB-O7h8rVLzDCJBUFcanbGeuVS2nvDG4wIYFAes6IRtU1NNk-EofkZ8yhWTMnn_qUGmv-3vrJdslCzwKzc3AKabSvwIGOKRB3phJKy_ch7

 

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