Copper consumption levels are expected to increase significantly in the coming years, driven by the energy transition and the electrification of the economy. Even accounting for approximately 20% of copper being substituted by alternative materials, the average demand growth over the next 10 years has the potential to exceed 10% annually, with lower rates in the earlier years of this period.
At the same time, forecasts indicate that copper production is likely to peak around 2030, followed by a decline in known reserves, which could further drive up prices in the long term. Taking these factors into account, it seems reasonable to consider starting a DCA (Dollar-Cost Averaging) strategy in copper, for instance, through the WisdomTree Copper EUR Hedged ETF . This product provides a practical way to gain exposure to copper prices while hedging against EUR/USD currency fluctuations (or just go for the commodity itself if no hedge is intended).
Unless there are major technological breakthroughs or substantial changes in copper substitution by alternatives in the coming years, this investment could prove attractive in the long-term horizon. However, if prices are not structurally supported before 2030, it might be more strategic to explore this type of investment closer to the production peak.
Am I overlooking something? Any thoughts?