Copper is one of the most reliable indicators of global GDP.
And the demand for copper is expected to remain robust as the emerging markets continue to build out their infrastructures and the world becomes increasingly urbanized.
However, supply is a different story.
In a recent presentation, Vivek Tulpele, the Chief Economist at Rio Tinto offered this slide showing the four factors that could constrain supply.
As you can see, the grade of copper is declining, lead times are getting longer, disruption rates are getting higher, and the governments of suppliers are getting riskier.
Photo: Rio Tinto