Bank of America is sounding the alarm on the copper supply crisis, with analysts predicting that prices will continue to rise as demand for the metal surges. In addition to gold and silver, investors are now being urged to pay attention to copper as prices have already increased by over 10 percent this year.
The scarcity of copper supply, combined with the growing demand for the metal in sectors such as power cables, electric cars, and renewable energy infrastructure, has led to the current price spike. Bank of America strategists believe that the lack of growth in mine supply is evident, with China’s smelters and refineries struggling to meet demand.
Citi analysts also expect copper prices to rise, warning consumers to hedge against potential cost increases. They predict that copper prices could reach $12,000 per ton by 2026, with the potential for even higher prices if a strong cyclical recovery occurs.
While copper is taking the spotlight, Bank of America analysts are also bullish on gold and silver. They expect gold prices to average $2,500 per ounce by the fourth quarter and potentially reach $3,000 per ounce by 2025. Silver is also expected to benefit from lower interest rates and increased industrial demand.
For investors looking to capitalize on the rising prices of gold and copper, Bank of America has identified promising investments in companies such as Agnico Eagle Mines, Freeport-McMoRan, Alamos Gold, and HudBay Minerals. These companies have already seen significant gains in their stock prices this year, and analysts believe there is still room for further growth in the coming months.
