Copper Prices Soar Amid Dwindling Supply and Booming Demand
The price of copper has been on the rise due to soaring demand and dwindling supply. In fact, zero new copper deposits were found last year, putting upward pressure on prices. It takes nearly 18 years for a new deposit to reach production, which exacerbates the issue.
Pairing this with increasing demand from artificial intelligence data centers, solar power, and electric vehicles, it's no wonder that copper prices have climbed 48% over the past year, reaching an all-time high. The Global X Copper Miners ETF (COPX) is a fund that provides investors with access to a broad range of copper mining companies.
The fund holds around 44 different copper miner stocks, including Freeport-McMoRan and Southern Copper, with no one stock accounting for more than 6% of the fund. The ETF has seen returns of about 24% this year and 64% over the past year. However, there is a risk that investor enthusiasm for AI-related stocks may lead to a decrease in copper prices.