Post by
Zipolitemexico on Apr 02, 2021 10:43am
Citi’s bullish call on copper
Summary (Feb 18th article)
Earlier this week, Citigroup made a huge call on the copper price for 2021 and 2022, forecasting $10,000 per metric ton, with a "bull case" for $12,000 per ton.
In simple terms that more people can appreciate, those numbers are about the same thing as $4.50 to $5.50 per pound of copper.
The all-time high copper price in early 2011 was in the $4.50-$4.75 / pound range. Copper prices over $5.00 per pound are completely uncharted territory in market history.
If a cautious and conservative bank like Citi is saying $4.50 to $5.50 per pound copper, it's actually quite possible the copper price will run as high as $5.00 to $6.00 per pound in 2021-2022.
A review of long-term cycle charts of copper vs. the S&P 500 shows long-term bullish potential for copper and base metals over the coming years and decade.