Tag Archives: copper supply deficits

Matt Badiali: Don’t Count Out Copper Or Silver

One man with a solid track record for picking investments in the natural resource sector is Matt Badiali. He is a geologist and financial advisor who has traveled to numerous countries examining natural resource assets firsthand to prove they were legit. He first gained a reputation in the world of finance after investing in a resource company during the great recession and making a 4,400 percent profit. He now writes a newsletter called Real Wealth Strategist which provides his subscribers with his recommendations in the resource sector. Some of his most recent advice has been trying to convince individuals to invest in silver and copper. While these metals have not been the best performers lately, Matt Badiali feels the fundamentals for copper and silver are strong and their prices may be headed much higher.

The strength in the US dollar has been the force holding back the commodities, particularly copper and silver. The trade war has created a lot of fear in the financial markets, causing many investors to buy the US dollar as a safe haven asset. When the dollar rises, commodities will usually drop in price. Many countries in the emerging markets have had their currencies depreciate rapidly against the US dollar, causing many to ditch their native currencies. If this trend continues, Matt Badiali admits that there could be a little more downside to commodities.

Silver has not performed very well, however, the gold to silver ratio hit an extreme of 84. Matt Badiali points out that every time this level has been breached, silver rallies substantially. It hit this extreme before it made an epic run to almost $50 an ounce in 2011. There are some analysts who feel that the next rise in silver could be as high as $130 an ounce.

Matt Badiali is extremely bullish about copper. The demand for copper is higher than the supply. Mr. Badiali anticipates that there will be copper supply deficits for the next few years, which will eventually launch copper in a major bull market. He feels the electric vehicle, which will require more than twice the amount of copper than traditional vehicles, will be the main driver of copper prices in the coming years.