In an interview, Robert Ryan, the current leading strategist at BCA Research, said his company is bullish on the yellow metal in the long-term as the Fed seeks to maintain its very loose policies in reaction to rising inflation.
The statement comes as gold has been going steadily up, pushing over $1,900 per ounce.
Meanwhile, copper pulled back from its record high at the beginning of May and silver is also getting relatively weak numbers.
However, Ryan says investors should not ignore these two, as he believes we will see heightened prices through the year as demand stays strong.
Ryan is especially bullish on copper and says the metal will keep seeing a large supply/demand imbalance that might last for years. Ryan said that miners will be forced to spend a huge sum of money to increase their operations, and it will take some time to get their operations going.
Ryan continued to say that new tax structures in crucial mining nations like Chile and Peru create more obstacles for companies seeking to create new projects.
“Currently, there is not an easy fix to expand the copper supply to meet the demand right now,” Ryan said. “Copper is required in every sector of the economy.”
Ryan predicted that copper could push over $5 per pound in the current environment. He continued to say that prices have risen to bring in more supply to the market.
Author: Steven Sinclaire