One copper price forecast claims that the precious metal could see a spike in value as the switch to renewable energy increases demand.
Goldman Sachs is behind today’s news with a forecast claiming that copper could hit a price of $15,000 per ton by the time 2025 rolls around. If true that would mean copper’s value would increase by roughly 66% during that period.
Here’s why investors should take note of copper.
- The forecast for the price of copper increasing ties back to the push for renewable energy from President Joe Biden’s Administration.
- That includes rejoining the Paris Agreement, as well as a push to boost the U.S.’s renewable energy markets.
- That’s not all. Goldman Sachs also believes that the copper industry isn’t ready for the massive demand that’s coming.
- The firm says that output hasn’t risen to meet demand due to the pandemic last year.
- That’s also a factor that could play into its copper price forecast becoming a reality, reports Markets Insider.
Goldman Sachs metals strategist Nicholas Snowdon said the following about copper in a statement collected by Mining.com.
“We are in a supercharged, synchronised global demand surge. Chinese demand remains very strong, growing at 4% this year, underpinned by strength in infrastructure investment, strong completion phase in the property sector, and also strong recovery in consumer led sectors.”
With an increasing price in copper comes gains for copper companies. That means investors looking to get in early need to know some of the best names in the business before investing. Among these are BHP Group (NYSE:BHP), Rio Tinto (NYSE:RIO), Vale (NYSE:VALE), Glencore (OTCMKTS:GLNCY), and Barrick Gold (NYSE:GOLD). Most of these companies are seeing decent gains today in what could be a reaction to Goldman Sachs’ bullish price forecast for copper.
Copper stocks aren’t the only ones on the rise Wednesday.
Several other companies across various industries are also on the move. A few examples include Palantir Technologies (NYSE:PLTR), Xpeng (NYSE:XPEV), and Bit Digital (NASDAQ:BTBT). Investors can learn more about what has these stocks up at the links below.
More Wednesday Stock on the Move
- PLTR Stock News: 11 Things for Palantir Investors to Know Today
- XPEV Stock: Is the XPeng P5 a Gamechanger for EVs?
- BTBT Stock: Why Crypto Play Bit Digital Is Gaining Today
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.