Is copper a better investment than gold?

Published: October 30, 2021, Last Updated: November 10, 2021

Why copper might be a better investment than gold right now

Since the outbreak of the epidemic, the price of copper, one of the world’s most versatile metals, has skyrocketed, reaching a decade high of US$10,000 per metric ton in May.

Prices have lately changed in response to rumors that China may attempt to limit the current global commodities spike, providing a chance for investors to invest in a metal that is expected to continue in high demand.

Here’s why copper is poised to become a precious metal, and how you may profit from it.

It ranks third for jewelers, after gold and silver, but first for electronics and engineers. It’s tough, flexible, and exceptionally good at conducting heat and electricity.

Copper may be found in industrial gear, electrical wiring and electronics. Though limited, it is also used in Jewelry.

Its applications are so many that the basic metal is frequently referred to as “Dr. Copper” due to its capacity to diagnose the general health of the economy. And, with the epidemic recovery well started, the price of copper is once again riding shotgun.

However, although the global recovery is one element making it more desirable, a number of large projects and trends are projected to drive demand even higher.

Expect copper to play a significant part in any building projects as the United States moves through with plans for enormous infrastructure improvements aimed at mending its decrepit roadways and bridges, as well as modernizing airports and transit systems.

Even better news for resource-rich Canada and its investors comes from copper’s pivotal position in the transition to electric vehicles and sustainable energy. Electric cars require two to four times the amount of copper as gasoline-powered automobiles.

Copper’s antibacterial characteristics may also make it beneficial for high-touch surfaces in hospitals and health care facilities aiming to reduce infection transmission in the aftermath of COVID-19.

Copper is up 30% this year, according to BNN Bloomberg resources pundit Andrew Bell, with recent trading levels bringing the commodity near its 2011 record high.

Important Copper Facts for Investors

What are the most significant copper statistics for investors to know? The metal has a long history of association with human development for millennia, from its usage in plumbing in ancient Egyptian civilizations to being a vital component of power generation.

Copper, considered a tertiary commodity in comparison to the brighter allure of gold and silver, until recently was the third choice for metals-focused investors during economic turmoil. Copper is now vital for the transition into electric mobility and green power generation and has been outperforming both gold and silver significantly over the past 12 months.

Here are some fundamental copper data for those interested in the copper resource sector.

Copper, one of several base metals, is distinguished by its reddish-orange hue. Despite being a base metal, it has the periodic table symbol Cu and is found in the same group as the valuable metals silver (Ag) and gold (Au). Because all three of these valuable metals occur naturally in elemental form, they were among the first elements identified.

Copper is soft and has a high thermal and electrical conductivity when it is pure. Similar to its sister metal zinc, these properties make it attractive for usage in alloys that are critical in many sectors, including manufacturing and construction.

One important copper fact is that building is the metal’s most common application globally. The building industry is anticipated to consume roughly half of global copper supplies. Due to its corrosion resistance, a residence may contain on average 439 pounds of copper in copper wire, pipes, and appliances, whereas a car can have 50 pounds of copper in its motor, connections, and brakes.

Copper prices are linked to the health of property markets since dwellings rely so heavily on the semi-precious metal. Because of the metal’s outstanding electrical conductivity, the electrical and electronics industry is the second-largest market for copper. Electric cars and increasing green energy production have now entered this sector.

In terms of consumption, China has held the top rank multiple times, most recently in 2020, when the Asian nation consumed the most refined copper at 11.98 million metric tons (MT).

In addition, the country is ranked first in a 2019 list of copper ore and concentrate imports, with Japan and South Korea trailing behind. Refined copper imports in 2019 were similar, with the United States and Germany coming in second and third place, respectively.

What is the price of copper, and who decides? The free market determines the price of copper. Extraction, copper production, and distribution expenses are balanced with demand by producers, suppliers, and buyers. The London Metal Exchange and the COMEX are two popular exchanges where copper is traded.

Copper is widely consumed, but it is also widely traded, which can result in price volatility when huge orders enter and exit the market. Copper, like many commodities, is predominantly traded on the futures market, allowing investors and consumers to hedge against variations in copper metal prices.

Meanwhile, copper’s role in the electric car revolution is expected to drive demand for the foreseeable future.

Copper Is Conquering the Commodity Investment World, Not Gold or Silver (hints Wall Street Journal)

In contrast to precious metals such as gold, which are largely used as a store of wealth, industrial metals have genuine function.