The BEST Metal to Buy for the Next Phase of the Supercycle

There are about 200,000 tons of copper left in the London Metal Exchange warehouse. Now, that is the pile the entire world outside of China and America borrows from when it runs short, but roughly half of that is already spoken for. Inventories there have fallen for 42 straight trading days, the longest draw down streak since 2014. The Congo just banned exports of copper concentrate. And the United States pulled in more than 200,000 tons of refined copper in the month of July alone. That is the biggest month in 12 years. And copper prices, they're sitting near all-time highs, setting up in a textbook breakout pattern that is about to explode higher. And I just started buying again. Today, I'm going to show you the number in the copper market that tells you this is still early. and I'll show you three copper mining stocks that have a lot of room left to run. So, make sure to subscribe to the channel because this is likely to be one of the biggest commodity trends of the decade. Now, here's what's actually happening under the hood. In a normal market, a barrel of oil or a pound of copper you can have 3 months from now costs a little bit more than one you can have today because you're paying for storage and financing. That's just how it works 95% of the time. But right now, copper is doing the opposite. Buyers are paying a fat premium to get metal in their hands immediately rather than waiting 12 weeks for it. At the end of July, that premium was about $34 a ton. Basically nothing. By August 11th, it was $27. By the middle of last week, it was $434. And this week, it hit $545 a ton. The industry calls this backwardation. And it means that somebody out there needs physical copper now and cannot find it. They are paying up a lot to jump the line. Now, the last time the spread got this wide was a 2021 squeeze that nearly forced the exchange to step in. So, why can't anybody find copper? Because three separate things broke at the same time, and none of them are fixed. Number one, the Congo. On August 6th, the DRC banned exports of copper and cobalt concentrate outright. They want the processing done at home, and that order touches roughly a fifth of the country's output. Number two, Chile, the biggest copper producer on the planet, is expected to produce about 2.6% less this year than last year. Canelkco pushed a major Eleniente expansion out to 2029 after a big seismic event. Anttopagasta cut its guidance. Chilean output is stuck around 5.5 million tons below where it was back in 2018. And then number three, acid. About 17% of the world's copper is produced with a process that runs on sulfuric acid. China banned acid exports in May. The horm straight. That closure back in February, still going on now, took out roughly half of the seaborn sulfur shipments. And with no acid, you can't get any copper. So things happening on three continents, three totally different problems, all hitting the same pile of metal. Now, by the way, if you like content like this, if you want the trades I'm taking, you need to join my Black Ops trading service for just $5. You get a whole year of access that includes live one-hour mentoring sessions with me every week for a year. another session with my analyst, indicators, bonus reports, uh, tons of stuff there, even my weekly newsletter. So, click the link in description, you can scan that QR code or just go to tradewithro.com to get signed up, and I promise it will be the best five bucks you spend this month. Now, here's the part that should just end this whole argument up front. Okay, global mine production fell 1.6% over the first five months of this year. not not not grew a little slower. Production's down. And the International Copper Study Group thinks that refined production grows a whopping 4/10en of 1% for the full year. Now, I have been talking about the opportunity in copper all of 2026. Over that time, it has steadily marched higher up 46% in 12 months. Now in any other commodity, a 46% jump in the price would bring a flood of new supply. But here we have supply going backwards. And that folks is the whole opportunity because this problem cannot be fixed with money. You fix it with 10 to 15 years and a whole bunch of permits. And there is a wild card sitting on the president's desk right now. The 50% section 232 tariff that took effect in April covers copper pipe, wire, rod, and sheet. Now, it does not cover refined cathode, the actual benchmark stuff. Commerce recommended a phased tariff on the cathode starting at 15% in January and stepping up to 30% the year after. The White House was supposed to rule on it 7 weeks ago. So far, it hasn't. Every commodity trader on Earth is doing the same math. They're saying if that tariff lands, a pound of copper inside the United States is instantly worth 15% more than a pound sitting in Roderdam. That's why 200,000 tons got dragged onto American soil in July and why the rest of the world is now scraping the bottom of the barrel. Now, if you missed my other videos on this topic, here is the 92 summary of why the demand side isn't going anywhere. A data center needs roughly 27 to 33 tons of copper for every megawatt of capacity. BHP measured 180 watt mega build that ate more than 2,000 tons before anybody reinforce the grid that is feeding at the power. And the International Energy Agency says that on current plans, the mines we have globally will cover about 70% of what the world needs by 2035. 70%. So, somebody's not getting their copper. Who's going to get it? The ones willing to pay the highest price. And we just saw this play out in the oil market. Iran closed the straight of war moves or Trump or Iran or Trump or Iran. I can't keep up anymore. But nonetheless, 20 to 25% of the world's supply got cut off. And so, what was left wasn't enough to meet demand. So, what happened? People paid up and we watched the price sore. That's what we're going to see with copper. But there is an even bigger opportunity here because when copper goes up, just like gold and silver, when they go up, the profits of the companies mining that copper go up much faster. And one stock, Southern Copper, just proved it in the most brutal way possible. Now, last quarter, they produced 3.5% less copper than the year before. Less metal out of the ground. their net income, their profits rose 71.6%. So they dug up 3 and a.5% less metal and made 72% more money. Their cash cost to produce a pound of copper collapsed to like 5 cents. This kind of operating leverage is why many investors choose to own the companies rather than commodities. I however am doing both. Now I was long a few July copper futures contracts last quarter. I showed those all to you live. I did have to close those out before expiration. I netted like I don't know 30 35 grand on the trade. But I think this thing is just beginning and I'm going to show you why. Okay, let me take you to a chart of copper futures. Now, this is a daily chart covering roughly the last year and most of you by now I've beat you over the head with this classic supply demand breakout pattern where you get a big run higher. You get this concentration consolidation. it breaks out and then right as it was breaking out here, what happened? Well, this short little war or this little uh whatever you want to call it with Iran has not been so short. It has not ended so quickly and so that has cast a lot of doubts in the market and I think copper would be much higher here already. But instead, it's gone back into consolidation mode. It's tightened up once again. It's pulling up next to the highs. This is kind of like base one, base two, two breakout patterns stacked on top of each other. And we just got a little dip here on Tuesday back down to the 50-day moving average. And I started buying futures contracts. Okay. So, this is in my uh uh or or what I'm expecting to see is a strong move over the next couple of months as copper fires through here to again new alltime highs pushing up into the goodness gracious. There we go. 78 plus per pound move. Now, if you don't want to buy copper futures, if you don't want to buy 25,000 pounds of this stuff, let me show you why. Now, this is a chart, a daily chart of copper futures, ticker HG, and we're looking at roughly the last year of price action here. And you can see this breakout pattern, the one I beat over y'all's heads in the live sessions every Monday where you get the big move up. You get this multi-week, multimonth consolidation as supply gets absorbed. Price action tightens. It kind of breaks out and pushes higher. Now, I would expected this to go seven and a half, eight bucks over the last couple of months, but it hasn't. It's held flat. And a lot of that has to do with what's happening in Iran or what's not happening, ceasefires. This wasn't supposed to take very long. It's drugged out a lot longer than we expected. Shocker. And that's just created some fear in the market. It's the same reason stocks kind of chopped around. But what we're forming now is just it's gone right back into consolidation. So it it it's put in a brand new pattern. Started to retest here. Kind of dipped in. Big demand steps in. Supply starts shrinking. It's shallowing up here. So we have kind of like base number one and base number two stacked on top of each other. two breakout patterns just showing you, you know, eight ten months of consolidation in copper getting ready to explode higher as all that inventory gets sucked out of the market right as a demand is coming in and and and exa and accelerating. So what I believe we will see and what I'm expecting from copper over the next several months is kind of a push bounce explosion to new high strong rally up in here to the high7s low8 per pound very similar to what we saw kind of the tail end of 2025. Now copper futures um each contract represents 25,000 pounds of copper. Okay, so this isn't a little trade. 25,000 lb, 6 12 bucks a pound, you know, do the math. 150 160 grand. So if you don't want to buy 12 1/2 tons of this stuff, you got two options. A copper ETF or copper mining stocks. Now the ETF is ticker CPER. That is a United States copper index fund. Trade just like a stock. You buy it pretty much any account. But for the miners, here are my three favorites. Okay. Stock number one, Freeport Macaran, ticker FCX. Now, I've got the pattern kind of drawn out here on the chart. And what I'm looking at, this is the largest US copper producer. They have Grassburg, which is finally coming back. Throughput doubled between April and June. Management just cut their full year's guidance, uh, their cost guidance down to a$1.90 a pound. Folks, they're selling the stuff at 6 bucks a pound. Do the math. Huge margins. Okay. And again, very similar to the copper futures, we're seeing that same pattern, although this one is really held in just just an entire, you know, three quarters roughly of consolidation getting ready for that energy just to release and explode higher. Okay, stock number two, Southern Copper, ticker SCCO. Now, these charts can look pretty similar. They're in the same business. They do the same thing. That's not uncommon, and they're all top grade companies. Now, that quarter I described earlier, record revenue, record margins. They just declared a three uh $323 dividend. That's this company right here. And again, very similar. Same compression, same consolidation, same textbook uh uh uh breakout pattern forming here with this kind of just coiled spring action, which is getting tighter and tighter and tighter and getting ready to release that energy again, just like we saw here in late 2025. And then finally, my third stock, TCO Mines, ticker TGB. This is a cheaper, about eight bucks a share. Now, this uh this company rebranded to Treker Metals in June, but it's the same ticker, same company. Nothing has changed there. And this is the the pure North American play. Gibralar and British Columbia, Florence, Copper, and Arizona, both 100% owned. They have nothing in Africa. Now, their cost per pound is slightly higher at $241, but their price collars at $5.40 a pound expired in June. So, for the first time, they are going to capture every penny of profit at these higher prices. And so, this one I really like. Here you can see the breakout coming here. It's just it's just it's putting in a final little consolidation at this supply point that we had from back in January. In other words, all the people who got, you know, stuck in this thing at 8, 8 and a half bucks that have been underwater for the better part of a year are getting out. I think we're going to, it's exactly what I want to see. Final consolidation, absorb that supply, and then rip higher along with the metal and all the other miners. Okay. Now, if you'd rather spread it out, if you don't want to put all your money on one horse, just buy the copper miners ETF. The ticker is Cox. It owns all three of these stocks, plus dozens more. Look, industry analysts are saying copper needs to hold around $7 just to justify building the mines that nobody has even started yet. Folks, we're not even to seven. I believe copper could easily hit 10 to$12 a pound over the next two years. Don't forget to subscribe to the channel and make sure to click that link in the description. 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