A Believer. Manic Metals Report 09/26/2024

While some people may be skeptical about the massive Chinese stimulus package coper is a believer. Copper is soaring in overnight trade hitting a 2 month high as electricity demand hits record in the US and the global demand for copper is getting too hard to ignore.
Rising demand in the United States for data centers in artificial intelligence is helping to drive electricity demand to record highs.    John Kemp pointed out that U.S. ELECTRICITY GENERATION total led a record 2,069 billion kilowatt-hours (kWh) in the first six months of 2024, up from 1,971 billion kWh in the same period a year earlier and surpassing the previous peak of 2,048 billion kWh set in 2022. The extra 98 billion kWh compared with last year came mostly from gas-fired generation (+43 billion kWh) with other major contributions from solar (+24 billion kWh) and wind (+19 billion kWh).
And it’s not just the natural gas nuclear power or solar panels that are feeding this electricity, but it definitely is going to be copper because that’s the best conductor of electricity for artificial intelligence users cryptocurrency miners are willing to pay to get good steady supplies of electricity and that’s going to include massive use of copper .
The Chinese stimulus package is also feeding into a big run up in gold and silver and as we expected gold still has a chance to keep going and may hit $3000 an ounce the biggest hurdle to the slew of Federal Reserve speakers that could slow down the momentum but other than that the fundamentals for gold and silver look extremely solid.
Central bank buying of gold as well as lower interest rates in many parts of the globe and geopolitical uncertainty all feeds into the long gold and silver trade.
Look at the gold and silver and you look at today’s data that’s mention is under control and the economy as far as durable goods is rising could cause a pause in the precious metals, we also are seeing a lot of fed speakers that could also weigh on prices later . .

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