Burry Bets Big on Copper Amid Surge in Prices
Michael Burry, known for his successful prediction of the 2008 housing market collapse, has taken a stake in copper. According to recent reports, Burry has built positions in copper contracts and is betting on further price increases.
Copper prices have surged this month, reaching a record high of $14,875 on September 10, before slipping slightly. The metal's price has jumped 18% so far this year, largely due to large flows of metals to the US on speculation about tariffs on refined copper.
Burry's long-term thesis is backed by the mismatch between copper's demand and the time needed to develop new mines. According to Apollo Chief Economist Torsten Slok, major copper discoveries with deposits containing at least 500,000 tonnes have fallen from double-digit annual totals in the 1990s and 2000s to one or two in recent years.
Ero Copper, a Brazil-focused copper and gold producer, is among Burry's investments. The company's shares rallied over 7% on Tuesday following the investor's disclosure.