Surging stock prices of innovative companies bringing the ideas for tomorrow’s world are everywhere. These companies include Elon Musk’s Tesla, which offers clean carbon-free alternatives to fossil fuel guzzling cars of yesterday, Alphabet which owns google, and is also at the forefront of the development and application of artificial intelligence to self driving cars and various other forward thinking ideas in their diverse business portfolio. Mainstay companies such as Microsoft, Adobe, Nvidia, Intel, and many more also continue to occupy the main stage of future technology. But today, we’re not talking about the innovations that are driving many of these technology companies, but instead we see an opportunity in the raw materials that are most scarce and required to build the semiconductors, wiring, and electronics that make the innovations of these technology companies possible.
In particular, most investors are not aware, that experts predict copper and other precious and semi-precious metal reserves will virtually run out within the next 50 years. As our ability to meet the growing demand starts to fail, prices will inevitably go up, and go up significantly.
As early as 1924, US geologist and copper mining expert Ira Joralemon was predicting darkly that:
“… the age of electricity and of copper will be short. At the intense rate of production that must come, the copper supply of the world will last hardly a score of years….Our civilization based on electrical power will dwindle and die.” 1.
Copper plays a central role in the following technologies. And the “smart money” is starting to pay attention. Including historically very pessimistic Goldman Sachs who is now bullish on copper. Goldman Sachs upped its target for copper prices based on the outlook for global growth and because the market now faces a potential deficit next year, not the surplus it and others previously forecast.
1. Reference – https://rockysubjects.wordpress.com/tag/thomas-malthus/