U.S. Spending Big Dollars On Infrastructure Should be a Huge Boon for Copper Metals Market
- Financialnewsmedia.com News Commentary
PALM BEACH, Fla., April 7, 2021 /PRNewswire/ -- U.S. President's from Eisenhower to Biden may not always agree on much, but one thing they all say is important is a need for infrastructure repair and new developments. Highways, airports and a plethora of other projects are always said to be at the front of whatever administration is in power. Even today, shortly after the recent Presidential elections we heard from President Biden that he too shares this desire and vision… that the US's infrastructure is in dire need of repair and fixing it is perhaps the most prominent policy issue that both Republicans and Democrats agree upon. Many believe that repaving roads, expanding highways, improving railways and ports, and building out digital superhighways should make conducting business easier and faster and, in turn, stimulate the country's GDP growth. Since the election, the markets have rewarded investments that are expected to benefit from the rebuilding and expanding the US's aging infrastructure. The copper industry would be one sector that could flourish as a response. Industry insiders, GLOBAL V, discussed base metals, such as copper and said that: "Base metals have been one such beneficiary, with five of the six major base metals registering positive returns… Some may be surprised to see that copper has been the best performer among the base metals. Active mining stocks mentioned in today's commentary include: Ridgestone Mining Inc. (OTCQB: RIGMF) (TSX-V: RMI), Vista Gold Corp. (NYSE: VGZ) (TSX: VGZ), Kinross Gold Corporation (NYSE: KGC) (TSX: K), Sandstorm Gold Ltd. (NYSE: SAND) (TSX: SSL), Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI).
GLOBAL V continued speaking about what role copper will have. They said: "Copper is most widely used in electrical wiring given its properties as an excellent electrical conductor. Therefore, demand for the metal is most closely linked with growth in heavy machinery, consumer durables, electrical grids, and telecommunications. It is not known exactly what government support for new infrastructure will look like, but copper indirectly touches many of these improvements: Erecting new bridges, highways, and ports requires goliath machines to do the job; Once completed, these new projects are likely to attract investments in new cars, trucks, trains, cargo ships, and airplanes, all of which use copper extensively; and Should new infrastructure policies also focus on improving digital communications, copper is likely to see significant increases due to its prevalent use in wiring."
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