(Kitco News) - Roaring copper prices are due to speculators, said Gianni Kovacevic, investor and author.
On Tuesday Kovacevic spoke to Kitco Mining.
Kovacevic is the author of My Electrician Drives a Porsche?
Copper has had a great run in 2024, hitting an all-time high of $5.20 pound in May. Although he is a copper bull, Kovacevic said it is too much, too fast. He views the recent run as being driven by speculators.
"If any commodity goes up too radically, people just stop buying it," said Kovacevic. "[The speculators] take the stairs on the way up, but they always take the elevator on the way down."
Kovacevic believes in the fundamentals of copper due to energy transition and AI. The world will need a lot more of the metal, he says. He is also a believer in lithium, but low prices for the metal mean volatility ahead until supply and demand balance.
"The consensus is that if the lithium price stays at this level for a continued period of time, you will have no lithium," said Kovacevic. "Lithium will just cease to be produced for many projects, not all projects, but for many projects."
Uranium is challenged, said Kovacevic, due to regulatory hurdles and the long-time frame to build projects.
"I think it's a lot of lip service," said Kovacevic. "Ultimately, that's not where the world's going to go."
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