Michael Burry Bets Big on Copper

Michael Burry, the investor who correctly predicted the 2008 housing financial crisis, has placed a bet on copper contracts, citing a mismatch between demand and the time needed to develop new mines. This move has contributed to copper futures rising above $6.70 per pound, marking a sixth consecutive session of gains due to supply concerns.

Burry's investment in copper is backed by the sharp decline in major copper discoveries with deposits containing at least 500,000 tonnes. According to him, such discoveries have fallen from double-digit annual totals in the 1990s and 2000s to one or two in recent years, with none in 2025. This decline in new discoveries, combined with increasing demand, is expected to drive up copper prices.

One of Burry's indirect bets on copper is Ero Copper, a Brazil-focused copper and gold producer. Following his disclosure of a long position in the company, Ero Copper shares rallied over 7% on Tuesday. Burry believes that the demand for copper will continue to rise, driven by the need for the metal in various industries, including those related to artificial intelligence.

The global copper market is also facing supply concerns, with Sprott Asset Management predicting that global mined copper output could decline this year for the first time since 2017. This decline in supply, combined with increasing demand, is expected to drive up copper prices and make Burry's bet on the metal a potentially lucrative one.

## Why it matters The surge in copper prices could have significant implications for various industries, including construction, electronics, and renewable energy. As the demand for copper continues to rise, companies that produce the metal, such as Ero Copper, could see their shares rise. Additionally, the decline in global copper output could lead to a shortage of the metal, driving up prices and making Burry's bet on copper a wise investment decision.

The meeting between US President Donald Trump and Chinese President Xi Jinping this week could also impact the copper market, as any announcements or agreements reached during the meeting could affect global trade and demand for the metal. However, Burry's focus on the fundamentals of the copper market, rather than short-term hype or geopolitical developments, suggests that he is confident in his bet on the metal.

As the copper market continues to evolve, investors will be watching Burry's bet on the metal closely, looking for signs of whether his prediction of a surge in demand will come true. With copper futures already rising above $6.70 per pound, it remains to be seen whether Burry's bet on the metal will pay off in the long run.