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Copper is crashed on Thursday by about 25%.

That’s the largest single-day decline since the 1980s.
 

Trump pulled back on his 50% copper tariff by adding more specificity to the deal.

He removed tariffs on copper ore, concentrates, and cathodes, and got a little more specific. 50% tariffs on wires and pipes are here to stay. Who saw that coming?

Without a doubt, some change on that big of a tariff would come about, but it doesn’t change this…

Rick Mills at AheadoftheHerd.com reports:

The global copper market is entering an age of extremely large deficits

“According to McKinsey, global electrification is expected to increase annual copper demand to 36.6 million tonnes by 2031, compared to the current demand of roughly 25 million tonnes. However, the consultancy firm forecasts copper supply to be around 30.1 million tonnes, leaving a gap of 6.5 million tonnes by the start of next decade.

Green uses of copper accounted for 4% of copper consumption in 2020, but this is expected to rise to 17% by 2030, Aditi Rai, an analyst at Goldman Sachs, wrote in a note. He added a “net-zero emissions” path would mean the world would need an additional 54% of copper by 2030 on top of that forecast.

S&P Global Market Intelligence goes a bit further out, projecting that annual global copper demand will nearly double to 50 million tonnes by 2035. Last year, global copper mine production sat at approximately 22 million tonnes, short of even the current demand.”

With demand already exceeding supply, copper prices are set to increase.

And if you’re comparing the charts of copper vs. gold, both look to be on their way up.
 

Both have more than a decade-long cup and handles…

Both roughly follow the same pattern…

And since copper recently dipped from changes on tariffs, you shouldn’t feel too worried placing more long-term wealth where the copper is.

But that’s up to you.

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