Categories



TheLibertyMill




The Phaserl






AvatarProducts



“Copper is the new oil” and other views on the future of energy

by Simon Black, Sovereign Man:

One of my interesting friends is in town visiting Chile for a few days.

His name is Gianni– he’s originally from Croatia but lives in Vancouver, and has spent most of his career in the mining business.

Gianni is especially bullish on copper… primarily because he thinks the Age of Big Oil is coming to a rapid close.

He believes that conventional gasoline vehicles will be increasingly replaced with electric cars, which simultaneously reduces demand for oil AND increases demand for copper.

For investors, this presents an interesting opportunity.

Oil and copper prices have been strongly correlated for decades; in other words, as oil prices went up, copper prices went up.

This made sense in the past since both commodities were affected by the same macroeconomic forces.

Fast growing economies tend to consume a lot of copper and oil, pushing up prices.

But now Gianni thinks it’s time for those prices to de-couple.

You may recall that German carmaker Volkswagen is in hot water after being caught falsifying its emissions data. The press is calling it “dieselgate.”

Volkswagen has already been fined $15 billion by the US Justice Department, and roughly $2 billion of that is supposed to be earmarked to build electric vehicle charging stations across America.

This increase in EV charging infrastructure may very well create additional demand for electric vehicles… meaning that oil is going to start losing a LOT of customers, while electricity is going to gain.

Copper remains one of the most important commodities in electrical infrastructure, so prices may very well rise much higher in the future as a result of what’s starting to happen now.

Read More @ SovereignMan.com

Help us spread the ANTIDOTE to corporate propaganda.

Please follow SGT Report on Twitter & help share the message.

1 comment to “Copper is the new oil” and other views on the future of energy

  • aa

    “He believes traditional gasoline engines will be increasingly replaced with electric cars which simultaneoulsly reduces the demand for oil and increases demand for copper.” I am under the impression that in most cases it takes oil to produce electricity, so how is this going to reduce the demand for oil? In addition isn’t the electricity produced by oil and then used to power a car more expensive than if the car just used oil? This would work if electrical power was generated by ocean wave action which I have heard is potentially very efficient. However this is way too smart and efficient to be allowed and I am sure that the devils that be will think of a way to squash anything that really makes sense.

Leave a Reply

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>