According to Goldman Sachs copper might be mispricing ‘Russian supply risk’. The disorderly moves seen in Nickel have so far missed the copper markets as markets expect Russia’s 4% of global production of copper to be absorbed by world markets. The thinking is that most of Russia’s copper goes to China and China will simply replace Russia’s supply from Western markets. However, Goldman Sachs says this thinking may not accurately reflect the reality of copper markets actually supply risk and that have an elevated super cycle bull market target of $12,000 per tonne.

Over the last 15 years, copper has risen 9 times with an average return of 2.36% between March 29 and April 01. Does this mean that the Copper could be worth buying if the Russian supply risk has been mispriced? Is Goldman Sachs analysis correct?

Major Trade Risks: If the Russian /Ukraine crisis fades then commodity markets may sell-off in hopes of supply levels returning to pre-crisis levels.