The U.S. just declared a national emergency over copper.
Used in everything from electric vehicles and data centers to power grids and defense systems, copper prices are exploding with massive supply-demand issues.
It’s just part of the reason why copper ran from about $4.25/lb. to more than $5.40 – with more upside likely – since the year began, especially with growing demand for artificial intelligence data centers all over the United States.
For example, data centers require significant amounts of copper for their construction, most notably for their power networks, circuit boards, and cooling systems. According to BHP, “A study of Microsoft’s US$500 million data center facility in Chicago found it used 2,177 tonnes of copper, equivalent to 27 tonnes of copper for every megawatt (MW) of applied power.”
In addition, according to the International Energy Agency (IEA), hyperscale data centers have power demand of 100 MW or more, an annual electricity consumption equivalent to that used by around 350,000 to 400,000 electric cars, as also noted by BHP.
Moving forward, the amount of copper used in data centers globally, could grow six-fold by 2050 from about half a million tonnes today. Plus, global electricity consumption from data centers could run from about 2% of global electricity demand to 9% by 2050.
All of which puts even more stress on copper supply and demand issues – especially when you consider that the U.S. still relies heavily on foreign resources for supply.
Do you know what economists mean when they claim Japan is financing the American consumer? The explanation is really quite interesting. Please, allow me…
The lending rate at the central Bank of Japan is 0.5%. The US Fed rate was 4.25%, as of January 1, 2008. So, investors can borrow money in Japan at 0.5% and earn 4.25% guaranteed interest when they deposit that borrowed money in a US bank.
Wow… talk about a great gift! I’m sure you’re wondering, “Can I really gain a steady cash flow from borrowed money?” And the answer is YES.
I have had a few subscribers ask how the list is compiled and what it means when a stock candidate is either added or removed from the list.
During the week, 100s of charts are sorted through and watched each day. They are grouped based on what it is taking place; some are in the early stages of forming P3 squeezes, and others are forming P3½ patterns. I try to list them ahead of a Sweet Spot confirmation buy signal. Remember that often one pattern leads to the next.
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