Weekly Update: Gold, Silver… Now Copper?
Good evening, and welcome to this week’s edition of Stealth Trades!
There is a metal shortage that no amount of money can fix quickly — and the companies that see it early are already locking up supply.
Amazon just bought an entire mine.
And this is creating a huge opportunity for investors who get in early. Today I’m going to break down this opportunity and give you my top 3 stocks to take advantage of.
When the metals markets move, they move hard and fast. Prices can lie dormant for decades before exploding higher.
Gold went nowhere for more than a decade. Then last year it took off like a rocket – surging 60% and blasting through all-time highs.
The big winner was, and continues to be silver, however. Silver prices are up 300% in less than two years, breaking through $100 an ounce today.
If you’re a longtime subscriber, you probably own some of both. My newsletters and YouTube videos recommended buying gold at $2200, silver at $40, even palladium before its run.
But if you missed out on the rally in precious metals, don’t fret. Because there’s an all new metal trade setting up right now.
I’m not selling my gold and silver, but the smart money is rotating into a new opportunity right now.
What they’re buying today is the metal that actually powers economic growth. It is the physical backbone of the future.
They’re buying copper.
Unlike silver, copper demand is not being driven by speculative mania or retail frenzy. There is a genuine shortage.
With demand exceeding supply by 10 million tons annually, the price has nowhere to go but up.
Amazon Web Services — the backbone of the modern internet — just took unprecedented action.
Instead of buying copper on the open market, Amazon signed a direct supply deal with mining giant Rio Tinto.
And here’s the crazy part…
The copper mine involved in the deal was dead. The Johnson Camp mine in Arizona hasn’t produced copper in over a decade.
Amazon is resurrecting a dead mine.
Why?
Because they don’t believe the copper they need will be available later.
Rio Tinto is restarting this mine using experimental technology called bio-leaching — using bacteria and acid to extract copper from low-grade rock that miners used to throw away.
Let that sink in.
Amazon is one of the most sophisticated logistics companies on Earth. If copper were easy to buy, they’d just buy it.
Instead, they’re bringing a mine back from the dead to lock up supply.
Big Tech sees a shortage coming — and they’re racing to secure private supply lines before the rest of the world wakes up.
I thought I’d seen it all. But when the tech nerds start turning into miners… something big is happening.
This is the modern version of a gold rush.
To fully grasp the scope of this opportunity, we also need to kill one of the most misleading metaphors of the last 20 years – “the cloud.”
There is no cloud. Your photos are not stored in the sky.
They are in massive, windowless concrete buildings packed with silicon chips that run hotter than a pizza oven.
Every time you ask AI a question, a processor spins up, draws electricity, and creates heat. To keep that chip from melting, fans roar, coolant pumps cycle, and industrial air conditioning works overtime.
All of that movement — electricity and heat — requires infrastructure. And that infrastructure is copper.
A regular Google search uses a tiny amount of power. An AI query can use 10 to 100 times more.
We’re moving from a text-based internet to a computer-based internet — and that changes things.
Because as chips get faster, they get hotter. Air cooling has reached its limit.
The next generation of data centers will rely on liquid cooling — pipes running coolant directly across chips.
And the best material on Earth for moving heat efficiently?
Copper.
Actually, it’s silver. But silver is $100/ounce ($1,600 per pound). Copper is $6 a pound.
A recent study from S&P Global estimates that AI alone could boost global copper demand by nearly 50% by 2040.
At the same time, mining output is falling behind — creating a projected 25% supply shortfall.
Amazon doesn’t just need copper for wires. They need it for transformers, busbars, heat exchangers, and cooling systems.
Aluminum isn’t good enough. It conducts less, expands more, and creates fire risk.
Fiber moves data — not power.
Copper is non-negotiable.
No copper means no data centers.
No data centers mean the AI revolution hits a wall.
Higher prices should bring higher supply. But in mining, it’s not that simple.
Today’s supply shortage was 15 years in the making.
After the last commodity crash, miners cut exploration budgets, and now we’re paying the price.
It takes 15 to 20 years to bring a major copper mine online. Even if we started ten massive projects today, they wouldn’t produce meaningful copper until the late 2030s.
Plus, existing mines are aging. The easy copper is gone. Grades that were once 5% are now 0.5%. We’re moving mountains for slivers of metal.
That’s why Rio Tinto is using bacteria.
They’re digging through the trash pile because the cupboard is bare.
By 2030, grid demand alone could reach 15 million tons of copper.
AI… EVs… grid rebuilds… all fighting over the same limited pile of red metal.
Last week, copper hit $6 per pound.
For most of the last decade, it lived between $2 and $4.
This, my friends, is a breakout… not a top.
I admit, the chart is not perfect. But there is a clear compression that has been building for two decades…
The tough thing about buying copper is storage. At $6 per pound, a $12,000 investment would get you a metric ton of the stuff. Where are you going to store it?
You can’t.
Instead, we play the equities. We buy stock in the companies digging the stuff out of the ground.
Here are my 3 favorite copper mining stocks:
Freeport-McMoRan (FCX)
Freeport is the largest US copper producer, working the massive Morenci mine in Arizona. This is the industry leader.
Southern Copper Corporation (SCCO)
SCCO is in the number two spot by size.
Headquartered in Phoenix, this company has significant revenue and several new projects in the pipeline.
Taseko Mines (TGB)
If you’re looking for a high-risk, high-reward bet, this is the one.
Taseko is a $2 billion Canadian operator whose stock is up over 90% in 90 days with no sign of slowing down.
The company’s Florence Copper project in Arizona is nearing full operation with some of the lowest cost metrics in the industry.
Almost 100% of Taseko’s output is copper, making it one of the purest plays in this space.
Alternatively, if you want diversification, the Sprott Copper Miners ETF (COPP) is the catch-all play.
COPP is a basket of mining stocks. It holds all 3 of these stocks along with 58 others.
Best wishes for your trading,
