Justin’s note: David Forest, editor of International Speculator, is our go-to guy when it comes to anything about commodities.
He spent the last two decades of his career searching for new discoveries and breakthroughs in the resource space.
He helped develop the sixth-largest platinum-producing district in the world… discovered over one billion pounds of copper in Asia and South America… and was the first to be granted a modern exploration license in Myanmar’s emerging economy.
He’s an expert in this field and when he talks… it pays to listen.
Today, he shows us the inside scoop on a big money-making opportunity that will escape most industry insiders… and gives us an easy way to play it.
By David Forest, editor, International Speculator
There is a shortage coming.
It’s the biggest shortage of the last decade – and no one is talking about it.
You see, world supplies of what I call “weird copper” are running out fast.
Demand is the highest it’s ever been, more demand is still coming online, and this year, more weird copper will be consumed than all the miners on the planet can produce…
But let me take a moment to tell you what “weird copper” is.
Without getting into all the commodities jargon and weeds, weird copper is formally known as “raw copper concentrate.”
Raw copper concentrate is just mined copper that isn’t pure enough to be sold as a finished product. It’s composed of copper… and about 70-80% waste products, like trace amounts of quartz and iron.
In fact, only 20% of the world’s copper miners produce the pure copper that makes up the “copper price” investors hear about.
What most investors don’t know (and neither do most industry insiders) is that the other 80% of copper mines – the ones that produce weird copper – can’t sell their product to end users. They have to take another route to sell what they mine…
Weird Copper’s Emerging Profit Opportunity
Four out of five copper mines don’t care what the going “copper price” is at all.
Instead, they care what smelters (the industrial facilities that convert weird copper to pure copper and sell it for a profit) will pay for their weird copper.
And this number is hard for even industry insiders to get. There’s no global price for weird copper. Each smelter sets its own rates directly with mining companies.
That’s very hard to track.
But my International Speculator team is here to do the hard stuff for you. So we tracked the numbers – and they’re eye-opening.
In short, the market for weird copper is exploding upward… and it’s driven by the world’s largest copper market: China.
Check out how much Chinese demand for weird copper has increased over the last seven years:
Four hundred percent is a huge increase. In the last two years alone, demand almost doubled.
The reason for the explosion is simple… You can make a lot of money selling pure copper metal. And China is the world’s biggest market for copper, consuming half of all the copper in the world.
As China develops further as a world power, it needs a constant supply of pure copper for things like electric wiring for new buildings.
To capture the biggest profits, Chinese companies are racing to build new copper smelters. They can buy weird copper for a cheap, pre-negotiated price, melt the waste out of it at 2,000 degrees Fahrenheit, and then sell it at the higher copper price.
But new Chinese smelters will need to secure weird copper supplies… and therein lies the problem.
China isn’t a major copper mining nation. Its local copper mines are already tapped out.
The answer for Chinese smelters is imports. All new smelters will be fed 100% by imported weird copper.
And that makes a huge profit opportunity… especially when no one is talking about this story and even fewer investors understand the difference between weird copper and pure copper metal.
But my team and I put together the deep-dive numbers. They show the story clear as day.
We’re at the Tipping Point for Weird Copper
World supplies of weird copper are running out fast. By 2021, supplies will plunge 19% – much faster than supplies of pure copper metal, which will only fall 6%.
The conclusion is clear. There’s a massive shortage of weird copper coming. Demand is rising as more smelters turn on. And the global mining industry can’t keep up.
This will take many investors by surprise, including mining industry professionals. For years, there’s been more than enough weird copper to go around.
But we’re at the tipping point.
The chart below shows a weird copper shortage hitting fast and hard. In 2019, smelters will consume more than all the miners on the planet can produce.
The shortage will be 91,000 tonnes this year – the biggest shortage of the last decade.
And things get even tighter over the next couple of years:
In 2020, smelters will consume 134,000 tonnes more weird copper than miners can supply.
In 2021, new Chinese smelters will be up and running, and the world’s weird copper shortage will roughly triple – a 341,000-tonne shortage of copper feed.
There’s never been a time when weird copper was more scarce.
This Is Great News for 80% of Copper Miners
When supply is short and demand is high, prices will skyrocket in any industry.
Copper miners will charge more for weird copper – and smart speculators have the opportunity to profit.
At Casey Research, we’re smart speculators. We know that a three-year supply crunch will send prices higher.
Again, this story is flying under the radar of most investors… Even insiders don’t know about this…
Which is why you turn to us.
This imbalance in the market is ripe for speculation… And 80% of copper miners stand to benefit.
If you’re an International Speculator subscriber, you can catch up on how we’re perfectly positioned to profit here.
If you’re not, an easy way to play this is the Global X Copper Miners ETF (COPX).
Big things are happening in strategic metals right now… It’s a speculator’s paradise. Don’t miss out on profiting.
Editor, International Speculator
One that could multiply early investors’ money 64 times over. I’ve identified the three best miners set to profit from $33.7 billion in new demand from Homeland Security.
To learn more about this obscure metal – and get in before the huge run-up – go here.