John Carl,
Editor
Dec. 6, 2024
Most of the talk around tariffs and the impending trade war with China is negative — and warns of price shocks, supply chain disruption, and retaliation.
Certainly, these are risks America is going to have to face down if the Trump administration's plans continue as they are.
But the headlines are overlooking many of the benefits that come from a trade war... especially if you’re winning.
China is weak, as is Europe, Canada, Mexico, and the other trading partners outlined so far in the Trump tariff plan. We stand to do far more damage to their trading equity than they can do to us.
I’ll spare you the complete cost / benefit analysis since you and I as individuals won’t get to pick the outcome anyway.
Here’s the point I’m trying to make: like it or not, a showdown is coming, and so you may as well position yourself to benefit from the side that’s winning.
Protectionist policies can bring a lot of good if you’re invested in the goods that are getting protected.
And American copper is destined to be one of those goods.
American copper mining has been in shambles for decades with all of the profitable business driven overseas where countries like China, Russia, Chile, Mexico, and Peru can undercut prices. Canada and Australia have also benefited from America’s relative weakness on copper.
I’ve seen this firsthand. Not long ago, I visited the Cactus copper mine an hour south of Phoenix, Arizona, which operated during the 70s and early 80s. It was forced to shutter its operations when the free trade of the 80s drove copper prices below what was sustainable for the company.
The former Cactus mine, an hour south of Phoenix, Arizona, which shuttered its operations in 1984. It still contains millions of pounds of copper in its stockpile (upper right) and is about to stage a comeback.
I’m obviously simplifying many of the trade complexities, but the fact of the matter remains that free trade (despite its benefits in other areas) ultimately hurt American copper mining far more than it helped it. The Cactus mine closed its business and left an enormous hole in the ground behind in the wake of this global competition, despite the fact that it still contains hundreds of millions of pounds of copper.
And now, thanks to recent developments including the Presidential election, this isn’t the end of the story for the Cactus mine.
The billions of dollars of copper that remain in its stockpile are about to finally see the light of day.
A small junior miner is reopening its mining operations — and they’re introducing a new, competitive advantage that’s never been seen at this mine before. Or anywhere else in the world, for that matter.
An advanced, cyanide-free copper leaching technology has now made it possible to pull copper directly from the stockpile without the need for additional digging. And then, here’s the more impressive part: it also doesn’t require any additional crushing or refining, which flips the entire cost equation on its head.
The copper is leached straight out of the rock and put into sheets of 99.99% pure copper that can be bought and sold right away.
I’ve witnessed this technological miracle with my own eyes. America is leading the way in rolling out this innovation, and this junior miner is playing an essential role in its development, which includes a valuable partnership with Rio Tinto, one of the largest mining companies in the world and the owner of this groundbreaking (literally) new extraction process.
Each one of these 99.99% pure copper sheets is worth about $16,000 at today’s prices.
This competitive advantage is going to make all the difference in the coming trade war.
International trade is a complex beast — but it’s safe to say that protectionist policies, in combination with a new technological advantage that’s distinctively all-American, is going to yield enormous benefits for American copper.
Find out why so many investors are missing out on the revolution that’s happening right in their own backyard.
American mining is back from the dead and ready to take the world by storm... and this is your chance to reap the rewards of being on the winning side of this trade war.
Make it your own,
John Carl
Editor, Daily Profit Cycle