Bank Of America Really Likes The Look Of Copper

Luke Suddards

2 months ago1:36 min

Bank Of America Really Likes The Look Of Copper

Of all the assets Bank of America (BofA) lists in its 2023 outlook, it’s expecting the best returns from copper. And it’s easy to see why. Firstly, the US dollar has likely peaked and commodities such as copper – which tend to share an inverse relationship with the greenback – are likely to see an increase in demand as they become cheaper for buyers with other currencies. Secondly, China consumes 52% of the world’s copper, and the eventual reopening of the second-largest economy should spark new demand, as factories and building projects get back on track. Thirdly, there’s still a significant shortage of copper inventories, and the time it takes for mines to come online – a minimum of around seven years – is still too long to meet the existing and future demand. Lastly, the strong shift to

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