Barrick Gold Company. (NYSE: GOLD) is one of the largest producers of gold in the world. But CEO Mark Bristow recently emphasized another important mineral to watch.
During an interview with CNBC, Bristow said, “My point is that copper is the most strategic of all metals.”
He noted that batteries are the main driver of copper demand, but there is more to the story.
“Batteries are not a long-term solution to a better planet for everyone,” Bristow said. “What’s really important is the greening of our grids, and we’re starting to see that with big cable connections all over Europe. And we have to take greener energy or renewable energy into industrial areas. And to do that, you need big cables and the only way to transfer electricity is with copper.”
Even if all vehicles in California became battery-powered, Bristow noted, it wouldn’t be enough to save the planet.
“The real way to protect and leave a better planet for future generations is to develop a backward economy,” he said.
Because of copper’s crucial role in development, it represents the most strategic metal.
paying off:
How to invest in copper
Due to its strategic importance, copper offers potential opportunities for investors.
During the interview, Bristow said that copper fundamentals suggest “we’re going to be in short supply very, very soon” and “everything points to a better price for copper in the future.”
If you share this view and want to invest in copper, there are several ways to do so.
You can invest in physical copper by buying copper bars, coins or rounds from a metal dealer. You can invest in copper futures. Or you can buy shares of copper mining companies such as: Freeport-McMoRan Corporation. (NYSE: FCX), Rio Tinto plc (NYSE: RIO) and BHP Group Ltd. (NYSE: BHP). Barrick Gold also produces copper.
Investors can also use exchange-traded funds (ETFs) for exposure to metals. For example, file American Copper Index Fund (NYSE: CPER) to be a convenient way for investors to access the returns of their copper futures portfolio.
Gold is not forgotten
While highlighting the value of copper, Bristow also touched on gold, noting that it has always been an “asset.”
“At the moment we have a situation in the world where there is a question mark over whether the dollar will stand as a reserve currency in the future,” he said.
Fitch Ratings recently downgraded the default rating of the US long-term foreign exchange issuer from AAA to AA+ from AAA. The credit rating agency cited “expected financial deterioration over the next three years”, “high and increasing general government debt burden” and “erosion of governance” as the reasons behind the decision.
After Fitch’s downgrade, gold rose around 0.6% on the news but has since pared those gains.
Bristow acknowledged that gold is under pressure “because of yields as interest rates increase on the back of inflation.” He also noted that the yellow metal is “a single currency that politicians cannot print.”
Gold has served as a store of value for thousands of years. Unlike fiat money, which can be produced in unlimited quantities by central banks, precious metals have an inherent scarcity, which makes them a valuable hedge against inflation.
While gold does not offer a return, new companies have created ways for investors to earn passive income from inflation-proof assets. Here’s how to do it Invest no more than $100 in a rental property while staying completely out of reach.
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This article Barrick Gold CEO says this is the “most strategic” metal of them all – not gold appeared in the original Benzinga.com
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