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Tech & Science Investors rely on further upward movement with metals

07:40  18 may  2021
07:40  18 may  2021 Source:   finanzen.net

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, even if the last year a steep rally for industrial metals was presented and the copper price was recently driven on a record high, metals are still in demand for investors. According to experts, the long-term prospects are still tempting, especially for copper.

• Industrial Metals since the beginning of last year in the upswing

• Financial demand rises

• Energy turnaround and the end of the Corona pandemic could reinforce

the driving forces of the metal rally

according to experts from Goldman Sachs and the Bank of America stands out the opportunities well that the price increase in metals continues for a long period of time. Through the global addition of the pandemic, which had interrupted partly supply chains, the recovery should also bring high demand to metals, so Mark Burton from Bloomberg. Furthermore, high investments in renewable energies or electromobility are expected. For example, all these expenses should benefit the prices of metals such as Copper , Nickel , Silver , Aluminum and Platinum . Global ecologization is expected to be very commodity intensive for the next decades. The highly growing copper demand for China, which claims almost half of the funded copper, strengthens the offer deficit of this industrial metall.

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Revival for a whole area - also financial demand rises

The rally of the metals is a kind of revival for an area that was very weak for years and was considered for investments as non-profitable, so Burton. This leads to the fact that in addition to physical demand, especially the financial demand rising strongly and the raw materials to the new highlands. Currently, record amounts flow into some metals focused on exchanged products. The BlackRock World Mining Fund was almost double in the last six months and stands in a fortune of $ 7.5 billion. The peak of the Fund in 2011 was about 18 billion US dollars, which could be an index that the influx is far from completed.

Are we in a metal supercycle?

The term super cycle is used for a bull market that could extend over several years. After a long descent of the raw materials, these have achieved significant profits last year and thus initiated a turn. For a super cycle, it also requires a structural demand driver. This driving force could be the energy transition in combination with the end of the corona crisis, Mobeen Tahir says from the PT magazine. The business recovery and also the low stock levels due to delivery bottlenecks from pandemeal times increase demand for metals and other raw materials. In addition, many infrastructure expenses are planned, of which a majority should be used for environmentally friendly initiatives. In the US alone, one third of the infrastructure expenditures promised by President Joe Biden should be determined by 2 trillion US dollars for the electric vehicle sector. Many other countries have adopted bans of internal combustion engines for the next decades. According to research firm Wood Mackenzie, more than 300 million electric vehicles on the streets could be admitted worldwide in 2040, in 2019 there were still 5 million. The hydrogen fuel cell technology is also more and more subsidized and promoted. This type of energy transition is a good sign of metals such as copper, nickel and Co. as they are particularly heavily needed in said sector. The demand growth could continue to speed up in the next few years and also the short-term weakness of the US dollar could drive the trend even further. Whether you can really speak of a super cycle, can not be exactly saying, but that we are in a metal rally, seems clear. Whether super cycle or not, the next few months and years will be an exciting time for metals like copper and Co. Editorial Finanzen.net

Joe Biden's Buying Metals Abroad Could End Controversial Mining Projects .
The mayor of Superior, a town at the center of a controversial mining project in Arizona, said the news was "very disappointing."Instead of mining materials needed to build electric vehicles domestically, two unnamed administration officials told Reuters Biden will focus on purchasing the metals overseas and bring them into the U.S. Once the raw materials arrive, American workers will turn them into things like batteries, so electric vehicles can be built.

usr: 2
This is interesting!