Matt Badiali makes a claim that the price of copper has been at its best since 2014. Badiali goes ahead to mention that the red metal’s price rose even further in the last parts of 2006 and has been doing so exponentially in 2017. One thing that would make the price of copper to go even higher is the invention and introduction of more electric vehicles into the modern market. According to Reuters, there is going to be a nine-fold rise in the price of copper, courtesy of electric vehicles.
The Electric Vehicles
It is reported by relevant sources that there is going to be unprecedented growth in the number of electric vehicles in the very near future. According to Reuters, the number of electric vehicles, (cars and buses) shall rise from 3 million according to 2017 statistics, to 27 million by 2027. That immense growth shall see a great rise in the level of copper demand from the current 185,000 metric tons per year to somewhere around 1.74 million metric tons by the year 2027. That said, the automobile industry shall go from using only 1% of the world’s copper in 2017 to around 7% in 2027.
A new tenure in Copper’s Rally
What is more, there is going to be a sudden rise in the world’s economy. That means that the red metal is going to have a high demand when there is a stable world economy. There was a 2.4% growth in the GDP, the slowest rate since 2009. But there is an expectation that the economy is going to bounce back stable shortly. That said, Copper shall have a great market, and the price shall be favourable to the investors who already are drawing their investment plans in the red metal. To authenticate the claim, there is currently a stable growth in the oil demand that should bring the clear picture of an exponential rise in the demand for copper as time goes by. According to Matt Badiali, if the world is economically stable, then the demand for copper raises, though there has been surging demand for copper in the past few years, there is going to be a robust change real soon.
Matt Badiali is known to be one of the best experts in natural oil and energy. He owns some wells in different parts of the world. Badiali travels from one country to the other to find abandoned wells that he uses to produce natural gas. He has done a lot of investments as a geologist and serves as a mentor to aspiring geologists who are looking to follow in his footsteps.
— Matt Badiali (@Matt_B_Guru) November 14, 2017