Copper A good investment?
Copper the base metal that is used in electricity wiring and building has started the year strong at US 3.21 lb
Demand from China pushing it up. You can see the history of the copper price we are half way from the 2011 top. Were do i think copper prices are going i think long term there out look is strong. I think it will be higher than this price in 10 years due to two factors.
Two factors
The urbanisation of the world more people moving to cities two live means more building with copper
The Green car more electric cars means more demand for copper
These are just two of the main driver in the price
However technologies may in the future mean less copper is required to carry the same electric or different new materials.
You never know in the investment game you just have weight up all the evidence and made a decision.
Will demand be bigger in the future for copper yes but other factors play into it as well which are not always easy to assess.
Comment and upvote
In the long term you are right. But in the short term, probably not. This isn't the time to invest in copper. China is doing everything they can to cool down their property market => less demand for copper.
Copper jumped recently because China's largest melter(Jiangxi Copper) reduced production due to environmental reasons.
So it's not a desperate demand pull from rapidly growing economies that is charging prices higher, its a collapse in supply.
And there are also inflation concerns in the U.S. ... If US inflation turns further south, copper will likely follow.
on a macro scale its always hard to call global demand of a commodity. many different factor at play all at once i have not invested in the sector yet myself thanks for commenting
I think gold is a safer bet.
More risk yeah but more potential for higher return
Gold does have seasonality going for it right now. I think there was a temporary supply problem with copper.
Yeah i think was an issue with china
You got a 2.39% upvote from @upmyvote courtesy of @newmarket65!