The price of copper has risen significantly in recent months. It reached a three-month high in October. Many people are now wondering what the future holds. The upward price trend is based on various factors. One is the development of the US dollar. This is because when the US currency falls, the price of copper generally rises. The metal can be purchased more cheaply, for example from China. The economy in China also appears to be recovering, which boosts the copper price. After all, China is the most important player on the copper market. The Fed's expected interest rate cut next year will result in a weaker US dollar - good for copper.
In any case, the reddish metal is also one of the metals for which demand is expected to rise in the future. One factor that will tighten supply is the closure of a large copper mine in Panama. After fighting the project for many years, a court has now ruled that the mine must be closed. It was previously responsible for around 1.5% of global copper production, which may not sound like much, but it is still significant. Many analysts expect demand for copper to outstrip supply in 2024. New technological developments and electric vehicles will certainly consume more and more copper. What matters now is how the supply will develop. One thing is clear: when the economy is booming, demand for the reddish metal increases.
Conflicts and sanctions in producing countries can reduce the supply of copper. As copper plays an important role in modern technologies, investors should have an exposure to the copper sector. Torq Resources or Aurania Resources, which have copper as well as gold in their projects, would be suitable here.
This is the case for Torq Resources - https://www.commodity-tv.com/ondemand/companies/profil/torq-resources-inc/ - with its holdings in Chile in the Cecilia, Margarita and Andrea projects.
Aurania Resources - https://www.commodity-tv.com/ondemand/companies/profil/aurania-resources-ltd/ - also has these two important raw materials at its The Lost Cities project in the Andes in Ecuador.
Current corporate information and press releases from Aurania Resources (- https://www.resource-capital.ch/en/companies/aurania-resources-ltd/ -) and Torq Resources (- https://www.resource-capital.ch/en/companies/torq-resources-inc/ -).
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