(Kitco News) Copper is one of the leaders of this year’s commodities bull rally, and its price surge is far from over, according to Goehring & Rozencwajg Associates, which is projecting at least a seven-fold increase in copper before the bull rally subsides.
“We are strong believers that copper prices are heading significantly higher. After bottoming at $1.95 per pound in early 2016, copper prices have more than doubled.
Copper equities (as measured by the COPX ETF) have done even better, rallying over 200% — more than twice the increase of the S&P 500,” Goehring & Rozencwajg said in a report.
The last time copper was in a bull market was between 2001 and 2011. This is when copper saw a seven-fold increase in price, rising from $0.60 to $4.62 per pound.
A similar rise is possible this time around as well, especially considering that the fundamental drivers are even more bullish in 2021. “We would not be surprised to see copper prices again advance a minimum of seven-fold before this bull market is over.