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Copper June 11, 2024 04:10:35 PM

Hedge Funds Aggressively Bet on Copper: Predict 100% Rise to $20,000

Paul Ploumis
ScrapMonster Author
Hedge funds claim that copper supply could fall short of demand which could lead to a rapid increase in prices.

Hedge Funds Aggressively Bet on Copper: Predict 100% Rise to $20,000

SEATTLE (Scrap Monster): Copper prices fell below the $10,000 mark in June and are trading at $9,694 on Tuesday’s opening bell. It is down nearly 150 points in the day’s trade and dipped by close to 1.5% in the charts. However, leading hedge funds like Rokos Capital Management and Andurand Capital Management have placed aggressive bets on copper prices today.

The top hedge funds made significant bets on copper predicting that the prices could only double in the next five years. Both the hedge funds have placed an aggressive target of $20,000 on copper prices. That’s more than 100% in returns if their magnificent bet on copper prices turns out to be accurate.

Copper is among the top-performing assets in 2024 along with silver, gold, and the US dollar in the currency sector. While copper prices skyrocketed 25%, silver was up 27%, and gold surged by nearly 5%. On the other hand, the US dollar saw a spike of 2% this year outperforming all leading local currencies.

Coming back to copper prices, leading hedge fund Rokos Capital Management has put a target of $20,000 on the commodity. “We believe that we are at the beginning of the copper bull market and that the recent move higher in prices is just the start. Copper faces a decade-long supply deficit driven by the confluence of increasing demand due to the energy transition and persistent underinvestment in mine expansion,” they wrote.

Hedge funds claim that copper supply could fall short of demand which could lead to a rapid increase in prices. “A supply shock doesn’t get the price from $10,500 to $12,000. It’s what takes us from $15k to $20k,” said an analyst. However, the commodity market remains volatile due to conflicts around the world. A 100% spike from here needs to be treated cautiously.

 Courtesy: www.watcher.guru

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