One copper price forecast claims that the precious metal could see a spike in value as the switch to renewable energy increases demand.
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Goldman Sachs is behind today’s news with a forecast claiming that copper could hit a price of $15,000 per ton by the time 2025 rolls around. If true that would mean copper’s value would increase by roughly 66% during that period.
Here’s why investors should take note of copper.
- The forecast for the price of copper increasing ties back to the push for renewable energy from President Joe Biden’s Administration.
- That includes rejoining the Paris Agreement, as well as a push to boost the U.S.’s renewable energy markets.
- That’s not all. Goldman Sachs also believes that the copper industry isn’t ready for the massive demand that’s coming.
- The firm says that output hasn’t risen to meet demand due to the pandemic last year.
- That’s also a factor that could play into its copper price forecast becoming a reality, reports Markets Insider.
Goldman Sachs metals strategist Nicholas Snowdon said the following about copper in a statement collected by Mining.com.
“We are in a supercharged, synchronised global demand surge. Chinese demand remains very strong, growing at 4% this year, underpinned by strength in infrastructure investment, strong completion phase in the property sector, and also strong recovery in consumer led sectors.”