Copper and Uranium: The Coming Divergence
table of contents

Copper and Uranium: The Coming Divergence

The Depletion Paradox

3rdQuarter 2024 Natural Resource Market Commentary

A New Dawn for Nuclear Power

Precious Metals: TheReturn of the West

The Curious Case of Chinese Copper Consumption

When
December 5, 2024
2024Q3
Who

Leigh R. Goehring & Adam A. Rozencwajg

In 2016, copper was a contrarian bet at $2.10 per pound. In 2018, uranium languished at $17 per pound. Both metals have since soared, with copper prices climbing nearly 150% and uranium rising over 300%. The fundamental drivers we identified years ago have played out, and today, both metals are investor favorites.

But what happens next?

The bullish case for copper hinges on renewable energy demand—solar panels, wind turbines, and EVs. Yet, as optimism reaches fever pitch, our research raises a critical question: will renewables deliver on their lofty promises, or has the copper narrative been built on flawed assumptions?

Meanwhile, uranium stands at the dawn of a technological revolution. The advent of molten-salt small modular reactors (SMRs) could double nuclear power’s efficiency and redefine its safety standards, paving the way for an unprecedented energy shift.

The choice is clear: copper or uranium?

In our latest commentary, Copper and Uranium: The Coming Divergence, we examine why the energy efficiency of renewables may cap copper’s potential while uranium emerges as the decade’s true disruptor. From the failure of oceanliners against jets to the decline of supersonic flight, history provides powerful lessons in how efficiency shapes markets—and investment opportunities.

Which metal will define the energy future? The answer might surprise you.

Don’t miss this essential analysis from Goehring& Rozencwajg.

Download our Q3 2024 commentary for insight into:

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  • What Hubbert's Peak can teach us about the new era of oil and gas
  • Why Big Tech is Warming to Nuclear Power
  • How the Western investor is making a comeback in gold

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