Burry Pours Cold Water on AI Hype with Copper Bet

Michael Burry, a renowned American investor and 'The Big Short' fame, is betting on copper amid a record-breaking rally. According to his latest post, Burry is building positions in copper contracts, sparking hopes for a further surge.

The red metal's prices skyrocketed to $14,875 on September 10 before slipping slightly, but are now gaining momentum. Copper futures have risen above $6.70 per pound, marking the sixth consecutive session of gains as supply concerns continue to support prices.

Burry highlighted that part of copper's rally reflected a temporary supply lull and pointed out a sharp mismatch between copper's demand and the time needed to develop new mines. He cited Apollo Chief Economist Torsten Slok while stating that major copper discoveries with deposits containing at least 500,000 tonnes have declined significantly in recent years.

Ero Copper, a Brazil-focused copper and gold producer, has seen its shares rally over 7% following Burry's disclosure of a long position. Burry indirectly bet on AI through Ero Copper, which he believes will be needed for future manufacturing needs.