Don’t Fall for These Traps

In a hot market, misinformation spreads faster than the price rises. Let’s clear the air.

1. “Copper is infinitely abundant.”

   • Reality: We have resources (rock with 0.2% copper), but we lack reserves (economically mineable copper). Turning a rock into wire takes 15 years and billions of dollars.

2. “Recession kills copper.”

   • Reality: Usually yes, but this time, government spending on green grids (fiscal stimulus) acts as a floor.

3. “Mining stocks always track the metal.”

   • Reality: A miner can crash while copper soars if their specific mine gets flooded or nationalized (see: Panama, 2024).

4. “China is the only buyer that matters.”

   • Reality: India and Southeast Asia are the new growth engines. China’s share is shrinking (relatively) as the rest of the world re-industrializes.

5. “Scrap will solve the shortage.”

   • Reality: We already recycle almost everything we can. You can’t recycle a copper wire that is currently in use in a building for 40 years.

6. “Substitution: We’ll just use aluminum.”

   • Reality: You can’t use aluminum in high-performance EV motors or subsea cables. Physics is stubborn.

7. “It’s too late to buy.”

   • Reality: We are in inning 3 of a 9-inning supercycle. The energy transition is a multi-decade event.