Matt Badiali is a financial specialist who specializes in the commercialization of natural resources. His publications on the topic of natural resource utilization have gained more influence in the field of finance in recent years. Matt Badiali describes the Copper market as being unstable and “out of whack” this is due to the forces of demand exceeding the supply in the market, thus, creating a deficit in the market.
However, the prices of copper have not increased yet as investors do not see any sign of the price increase. According to the understanding of the market forces, Matt Badiali attributes the market performance of the copper industry to the emotions of the traders. He notes that the effects of demand and supply not only affect the market but the feelings, and the behaviors of the traders play a critical role. This includes the fear that the prices would create a trade war with China together with the hopes that the market would naturally gain balance as evident when unnatural events occur within the market. Projection models on the market of natural resources, however, fails to project for such kind of forces in the market.
Matt Badiali notes that for the copper market to reach this state, it is possible that the problem began a long ago between 10 to 15years. Thus, the significant bull market, which is characterized by a price increase of commodities is speculated to result in mining companies breaking the rules by taking measures such as investing a large amount of money on low-grade projects. The investors will suffer a blow as the prices of the copper will feel the loss that comes with this kind of situation. Thus, more companies have been declared bankrupt with far-reaching effects on the companies that produce the copper.
Matt Badiali, however, notes that more electric companies have shifted their attention to solar power and wind energy as the potential for the declining copper industry. Electric cars are considered a thing, and this means that they require more copper. The dwindling copper supply would be revived by enterprises, which produce goods such as fridges, batteries and other home appliances reviving the once dying industry.
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