Pierre Andurand buys copper, saying he remains long on the most useful magical metal, on copper demand.

This reddish brown metal, soft, malleable and ductile with very high thermal and electricity conductivity properties, has countless uses, from electric wires to copper pipes carrying water and gas. 

The average single-family home has approximately 200 kilograms (or 439 pounds) of copper contained in it, the the form of general appliances, electrical wiring, plumbing pipes, and so on.

“Pierre Andurand buys copper, saying he remains long on the most useful magical metal, on copper demand”

WEALTH TRAINING COMPANY

Copper can also be found in the circuitry of phones because it’s good at conducting electricity.

So, the demand for copper is likely to remain buoyant due to macro trends, digitalization, electrification of mass transport, and climate change demand for AC units and solar panels.

It even has uses in medical devices and medicine.

Copper is a metal gifted from Mother Earth, and there are growing fears that we are running out of copper, which could become a semi-precious metal. 

Copper makes an excellent inflation hedge.

It is no surprise Pierre Andurand exits his oil trades and buys copper

Andurand Capital Management remains bullish on copper and cocoa futures, even as prices for both commodities have retreated from rallies to all-time highs earlier this year, according to a letter to investors seen by Bloomberg. Meanwhile, the firm completely exited long positions in oil futures before a June OPEC+ meeting, with a current mixed outlook on the market, the letter said.

“We will re-engage in the oil markets once we obtain greater clarity on the supply side,” he wrote in a letter to investors. 

“We will re-engage in the oil markets once we obtain greater clarity on the supply side”

PIERRE ANDURAND

The pivot from oil to copper and cocoa comes, following Andurand Commodities Fund’s recovery from a record loss in 2023, which ended a three-year winning streak, as his bullish bets on the oil markets clocked losses. But in 2024, fortunes turned to Andurand Commodities Fund’s favour, with profits climbing 22%. Andurand Commodities Discretionary Enhanced fund, a more risk-exposed fund, soared about 63%, according to the letter.

“if the global economy moves up from here, if the global economic cycle is moving out of its trough, then buying copper at this early stage of the economic cycle could be a wise move” – Wealth Training Company

Meanwhile, Pierre Andurand buys copper, a bet which could pay off

Analysts at Bank of America (BofA) are projecting the copper price to rise above $10,000 per tonne by 2025, 

Bank of America analysts maintain a positive outlook, expecting prices to stay elevated with potential Fed rate cuts.

The two major central banks, the Federal Reserve and the People’s Bank of China have started with their loosening monetary policy.

Monetary policy has a time lag in terms of impacting the economic cycle, but household mortgage rates in the US are already starting to come down from their peak. 

So if the global economy moves up from here, if the global economic cycle is moving out of its trough, then buying copper at this early stage of the economic cycle could be a wise move.