Barrick Gold CEO Says This Is The 'Most Strategic' Metal Of Them All — And It's Not Gold

Barrick Gold Corp. GOLD is one of the largest producers of gold in the world. But CEO Mark Bristow recently emphasized the importance of another metal to keep an eye on.

During an interview with CNBC, Bristow said, "My view is that copper is the most strategic metal out of all the metals."

He pointed out that batteries are a major driver for copper demand, but there's more to the story.

"Batteries is not a long-term solution for the future of a better planet for all," Bristow said. "What's really important is greening our grids, and we've started seeing that with big cable connections around Europe. And we've got to take the greener energy or renewable energy to the industrial regions. And to do that you need big cables and the only way you can transport electricity is with copper."

Bristow noted that even if all vehicles in California became battery-powered, it wouldn't be enough to save the planet.

"The way to really protect and leave a better planet for future generations is to develop the underdeveloped economy," he said.

And because of copper's critical role in development, it stands as the most strategic metal.

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How To Invest In Copper

Because of its strategic significance, copper presents potential opportunities for investors.

During the interview, Bristow said that the fundamentals of copper suggest "we're going to be in short supply very, very soon" and "everything points to a better copper price in the future."

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If you share that view and want to invest in copper, there are several ways to go about it.

You can invest in physical copper by purchasing copper bars, coins or rounds from a metals dealer. You can invest in copper futures. Or you can buy shares of copper-mining companies such as Freeport-McMoRan Inc. FCX, Rio Tinto plc RIO and BHP Group Ltd. BHP. Barrick Gold also produces copper.

Investors also can use exchange-traded funds (ETFs) to gain exposure to the metal. For instance, the United States Copper Index Fund CPER is designed to be a convenient way for investors to access the returns of a portfolio of copper futures contracts.

Gold Is Not Forgotten

While highlighting copper's value, Bristow also touched upon gold, noting that it has always been a "go-to asset."

"Right now we have a situation in the world where there's a question mark over whether the dollar will stand up as a reserve currency into the future," he said.

Fitch Ratings recently downgraded the United States' long-term foreign-currency issuer default rating from its highest AAA rating to AA+. The credit rating agency pointed to "expected fiscal deterioration over the next three years,"  a "high and growing general government debt burden" and an "erosion of governance" as reasons behind the decision.

After Fitch's downgrade, the price of gold rose about 0.6% on the news but has since pared those gains.

Bristow acknowledged that gold has been under pressure "because of the yields with the increase in interest rates on the back of inflation." He also pointed out that the yellow metal is "one currency politicians can't print."

Gold has served as a store of value for thousands of years. Unlike fiat money, which can be produced in unlimited quantities by central banks, precious metals have an inherent scarcity, making them a valuable hedge against inflation.
While gold doesn't offer a yield, new companies have innovated ways for investors to earn passive income from inflation-resistant assets. Here's how to invest as little as $100 in a rental property while staying completely hands-off.

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