Click here for the PDF: The Weekly Beacon June 16 2023

We will be giving some macro economic market updates on a weekly basis. No equity recommendations will be given in this commentary, and we encourage you to contact us if you have questions regarding any observations.

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This weeks issue: FED, Interest rates, FOMC, Jerome Powell, Inflation, CPI, Mortgage rates, Housing prices, Gold, Central Banks, Global reserve currency, US dollar, Gold as a currency, Euro, Japan, Russia, China, Copper demand, EVs, Renewable energy, Copper price forecast, AI bubble, Nvidia stock, Venture funding, Euphoric stock market bubbles, Energy prices, Crowded trades, EPS growth, Retail sales, Roots sales, target sales, Best Buy earnings.


Citi projects higher copper prices

Citigroup released its latest market predictions and insights this past week, and they made one major projection that many are raising their eyebrows at. Citigroup made a forecast that copper will double in price by 2025. Copper is currently trading at $8,300/ton and they are projecting it to trade above $15,000 by 2025.

Copper prices peaked at $11,300 in October 2021.

Max Layton, Citi’s managing director for commodities research, said he believes now is an ideal time for investors to buy, as the price of copper is still muted on global recession concerns. Citi highlighted that the short-term price could retreat for copper to recession fears but in the mid-term, the problems will persist in the supply side of the market as it struggles to keep up with boosted demand. The demand for EVs and renewable energy will continue to expand which will expand the demand for the industrial metal copper. EVs require almost three times the copper compared to traditional combustion engine vehicles. On top of the increased demand, supply is dwindling across the world. According to S&P Global, only 16 of the 224 copper deposits discovered between 1990 and 2019 came over the last 10 years.