The investment landscape for copper has been ignited by recent bullish predictions, particularly from prominent hedge fund manager Pierre Andurand.

Andurand's forecast of copper prices reaching $40,000 per tonne underscored a compelling investment opportunity in copper miner stocks and the Global X Copper Miners ETF (NYSE:COPX).

Here are the drivers behind his optimistic outlook for copper. Benzinga will also touch upon the performance and holdings of the Global X Copper Miners ETF and examine technical indicators to present a comprehensive case for investors.

Copper Demand-Supply Dynamics

Copper, a critical metal in the energy transition, is poised for significant demand growth. Andurand’s prediction is based on the increasing electrification of the world, including:

electric vehicles
renewable energy infrastructure
military applications
data centers

As these sectors expand, the demand for copper is expected to double, outpacing supply, which traditionally takes about 15 years to develop new mines.

Pierre Andurand's Bullish Outlook For Copper

Andurand, known for his success in commodities trading, shifted his focus to copper after experiencing setbacks in the oil market.

His Commodities Discretionary Enhanced fund rebounded from a 55% loss last year and is now up 83% year-to-date, largely due to diversified commodity investments.

He believes current supply constraints and robust demand will propel copper prices to unprecedented heights.

COPX ETF Overview

The Global X Copper Miners ETF (COPX) offers a targeted investment in copper mining companies. With an expense ratio of 0.65%, the ETF has shown impressive returns:

3 Month Return: 32.70%
YTD Return: 27.36%
1 Year Return: 39.32%

Key Holdings

Global X Copper Miners ETF's portfolio includes leading copper miners, reflecting a diversified exposure to the industry (Company name, U.S.-listed ticker, allocation%):

First Quantum Minerals Ltd. (OTCPK:FQVLF) – 5.31%
KGHM Polska Miedz S.A. (OTCPK: KGHPF) – 5.30%
Boliden AB (OTCPK:BDNNY) (OTCPK: BLIDF) – 4.82%
Lundin Mining Corp. (OTCPK: LUNMF) – 4.72%
Teck Resources Limited Class B (NYSE:TECK) – 4.69%
BHP Group Ltd (NYSE:BHP) – 4.64%
Glencore plc (OTCPK: GLCNF) (OTCPK: GLNCY) – 4.60%
Zijin Mining Group Co., Ltd. Class H (OTCPK: ZIJMF) (OTCPK: ZIJMY) – 4.58%
Antofagasta plc (OTCPK: ANFGF) – 4.54%
Freeport-McMoRan, Inc. (NYSE:FCX) – 4.51%

Also Read: Freeport-McMoRan Vs. Teck Resources — Which Copper Stock Has More Upside?

Charts Indicate Bullish Outlook For Global X Copper Miners ETF

The technical indicators for Global X Copper Miners ETF reveal a moderately bullish trend, with buying pressure suggesting a positive outlook.

Chart: Benzinga Pro

The Global X Copper Miners ETF share price is $48.66 while the 8-day simple moving average (SMA) is $49.98, which signals short-term bearishness.

However, the 20-day SMA at $48.35 and the 50-day SMA at $45.74 both indicate a bullish momentum. The 200-day SMA stands at $38.34, further reinforcing the bullish signal as the stock price remains well above it.

Chart: Benzinga Pro

The Moving Average Convergence Divergence (MACD) indicator is 1.21, suggesting bullishness, while the Relative Strength Index (RSI) at 53.65 indicates that the ETF is neither oversold nor overbought.

Additionally, the Bollinger Bands support bullish signals as the ETF is trading within the upper range.

Given the bullish forecast for copper prices, driven by robust demand and constrained supply, copper miner stocks and the COPX ETF represent a compelling investment opportunity.

Andurand's expertise and confidence in the market, coupled with strong ETF performance and supportive technical indicators, suggest that investors could consider taking exposure to this sector.

As the world continues to electrify and transition towards renewable energy, the demand for copper is set to soar, making now an opportune time to invest in copper miners through Global X Copper Miners ETF.

Photo: Shutterstock

Comments

Boliden Stock News

News

Latest Boliden Stock News | OTC:BLIDF | Benzinga

Monday, December 09, 2024

Monday, May 27, 2024

Popular Channels

Tools & Features

Partners & Contributors

About Benzinga