Why is Copper in High Demand?
The rising demand for copper, particularly in the context of the energy transition, offers private investors interesting opportunities. Here are some key aspects that underline the attractiveness of copper as an investment option:
Energy Transition and Electric Mobility
Copper is an indispensable component of modern technologies such as electric motors, solar systems, wind farms, and especially electric cars. An electric vehicle requires up to four times more copper than a conventional vehicle with an internal combustion engine.
Power Grids and Charging Infrastructure
The expansion of power grids and the establishment of charging infrastructure for electric vehicles further drive the demand for copper.
Sustainability and Recycling
Copper is almost indefinitely recyclable, which strengthens its significance in the context of sustainable development.
Opportunities for Investors
Long-term Demand Increase
International studies predict that global copper demand could nearly double by 2035. This is due to the increasing use in renewable energies and electric mobility.
Limited Supply
Opening new mines takes many years and is associated with significant regulatory and ecological challenges. This structural scarcity could support copper prices in the long term.
Investment Opportunities
Investors can invest directly in copper or in companies that mine or process copper. Copper is considered a hedge against inflation and a stability anchor, making it an attractive diversification option in a portfolio.
Geopolitical Factors
The copper price is also influenced by geopolitical factors, such as strikes in major mining regions or economic developments in China, the largest consumer of copper.
New Developments in Copper Production
Argentina is striving to become one of the world’s leading copper producers, which could open new investment opportunities.
In summary, the rising demand for copper in the context of the energy transition and electric mobility offers private investors interesting opportunities, particularly through long-term trends such as decarbonization and digitalization.