The copper conundrum: From base Mlmetal to precious asset

in LeoFinancelast year (edited)

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When, as I often do, discuss precious metals, I can bet my bottom dollar your minds turn to the lustrous allure of gold and silver, with occasional nods to platinum and palladium. However, in the evolving landscape of precious metals, a new contender is making its mark: copper. I've touched on this a few times over the years.... Could we see a big rally in the pricenof the bright red metal??

Copper's journey from base metal to precious asset is a story of scarcity and increasing importance. The yield of copper extracted from each unit of ore has been steadily dwindling. In the year 2010, the top 15 copper producers boasted an average yield of 1.2%. Fast forward to the end of 2016, and this figure had dropped significantly to a mere 0.72%. This decline has sent miners on a quest to uncover new sources of this invaluable metal.

One of the recent catalysts for copper's ascent to precious metal status can be traced to the automotive industry. The electric revolution, epitomised by vehicles like the Tesla Model S, has ushered in a new era of demand for copper. Electric cars like the Model S requires some three times more copper wiring than their internal combustion engine counterparts.

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Looking past the automotive sector, remember the world doesnt revolve around Elon... The world's rapidly expanding middle classes are fueling an insatiable appetite for goods such as smartphones, cars, dishwashers, and air conditioners. This surge in consumerism translates into a soaring need for electricity, where copper, as one of the most conductive metals, plays a pivotal role. While the majority will press the silver market for these technologies, and i believe the "green objectives" may be a catalyst for higher silver prices, but never wrote of copper!! The prices of copper have already begun to move upwards, this results in a copper market marked by a persistent deficit that shows no signs of vanishing in the near future.

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As we navigate this intriguing shift in the perception of precious metals, copper emerges as a shining star in its own right. Its journey from being merely a base metal to a precious asset is a testament to the evolving dynamics of our global economy and the ever-increasing significance of this remarkable element.

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Hi @welshstacker,
Thank you for participating in the #teamuk curated tag. We have upvoted your quality content.
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I don't own a silver, how do I get one, am interested @welshstacker

If you don't own any precious metals, then why not tell us? As a community we encourage ALL engagements and encourage everyone to take the plunge and own at lease a sinlge ounce of silver or a fraction of gold.

I very much dislike copper as being seen as a precious metal.
The original penny was a big chunk of copper.
So valuable that there was even a half penny.

But today, with modern mining, you can buy tons of copper for not much money (in investing terms) and this pulls a big chunk of the necessary metal off the market. Driving prices up, and making many manufacturers deal with less than they desire.

And then, the inevitable happens and the person has to sell their copper. This floods the market with a bunch of metal leaving no real buyers for the freshly mined stuff.

The "investing" in copper really messes with the market and sends bad signals to the miners about demand. Copper mining is a very slow process, and messing with the market so quick.

At least with gold, there is so little real use for the metal, so locking it up in vaults, although we have mined more than we will ever need, it can just sit there.

Kind of reminded me of a rash of local copper wire and pipe thefts from unoccupied homes and businesses that has been happening over the last few years. That finally ended on most part, by the requirement of Identification on Scrap dealers.

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