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Copper could reach $10 as markets gear up for 'commodity supercycle' - Gianni Kovacevic
As markets get ready to see a “commodity supercycle” driven by electrification over the next decade, copper will experience a bull market, going as high as $10 per lb, according to Gianni Kovacevic, Founder of LithiumBank Resources and best-selling author of My Electrician Drives a Porsche.
“We are going [into] a commodity supercycle, especially with things that feed into the future of energy,” he said. “There is an ongoing pivot to electrification. The greener and cleaner the energy that is created, transported and utilized, the more there is demand for copper… You could see copper at either $9 or $10 per pound on an inflation-adjusted basis.”
Copper, which is currently trading near $3.80 per lb, is used in electric vehicles and solar panels, as well as in wind, hydro, and geothermal units. Compared to fossil fuel and nuclear sources of energy, copper is used five times as much in renewable energy systems.
“The copper industry is going to be very helpful,” observed Kovacevic. “It’s about having the solar, wind, or other [renewable sources] creating the electricity either directly or storing it in a battery, and then using electrical transportation. That is the power of copper.”
Kovacevic spoke with David Lin, Anchor and Producer at Kitco News.
The ‘magic’ metal
In addition to copper, Kovacevic claimed that lithium would become a “magic ingredient” in the move towards electrification.
“Lithium and copper are going to be two mainstays in a battery,” he predicted. “The new, greatest prize is… the ability to produce electricity, mainly on a roof, being able to store that electrical energy, and being able to use it whenever needed or put back into the grid.”
Lithium-ion batteries are used in car batteries, and lithium is especially used in electric vehicles. Kovacevic said that lithium and copper have the potential to make nations energy “independent” with “no emissions,” as countries move towards so-called green energy.
“It’s the single greatest prize in all of history and it localizes energy,” he said. “When I build a wind turbine it’s there for twenty years… when I build a solar project for myself or my community, it is there for ten to twenty years. It’s not like you do this endless burning in a coal power plant.”
To find out Kovacevic’s forecast for gold and his investment outlook for 2023, watch the video above
Follow David Lin on Twitter: @davidlin_TV
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