about 5 years ago • 1 min
Here’s another snackable insight for Markets Pros 🍿
Morgan Stanley just joined fellow investment banks Goldman Sachs and Citigroup in predicting copper’s price will rise this year. Three’s a crowd 👪 – but not if they’re right…
Morgan Stanley’s analysts predict copper’s price will rise 14% by the end of 2019, to just under $7,000 per metric ton. The bank thinks that even a small growth in demand would be enough to outstrip supply: “weak grades at major operating mines more than offset limited growth from green- and brownfield projects,” its report says, “resulting in shrinking total mine production through 2019.”
Other banks are bullish too: Goldman also predicts a price of $7,000, and Citi’s forecasting a $6,700 price within the next six months 📈
“Doctor Copper” is renowned for being sensitive to the state of global economic growth – and dissenters argue that any significant increase in demand for the metal is still some way off 👨⚕️
Electric vehicles are expected to drive copper demand higher, but with major mining projects coming online, there may not be a supply deficit to drive up prices until the mid-2020s…
Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.