The copper conundrum: From base Mlmetal to precious asset
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.
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.
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.
If you dont 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. If your struggleing to find a safe and secure place to buy, reach out to the community as there is always someone willing to offer their time and advice to help you out.
40+yr old, trying to shift a few pounds and sharing his efforsts on the blockchain. Come find me on STRAVA or actifit, and we can keep each other motivated .
Proud member of #teamuk. Teamuk is a tag for all UK residents, ex-pats or anyone currently staying here to use and get a daily upvote from the community. While the community actively encourages users of the platform to post and use the tag, remember that it is for UK members only.
Come join the community over on the discord channel- HERE
Want to find out more about gold and silver? Get the latest news, guides and information by following the best community on the blockchain - #silvergoldstackers. We're a group of like minded precious metal stackers that love to chat, share ideas and spread the word about the benefits of "stacking". Please feel free to leave a comment below or join us in the community page, or on discord.