Recently the price of copper has gone up dramatically, and this does not make people working in the electrical business very happy. Will the rise in copper prices continue to keep going up or will they level out, this really depends on the supply and demand of copper. Stated in this article below are some of the reason why copper prices are on the rise.
Many people will assume that the price of copper is going up because of the demand for copper in countries like China and India, and this is partially true. China consumes 50% of the worlds copper and is a factor in the rising price but not the only or largest factor. The volatility in copper prices can be most highly attributed to the managers of copper funds.
Fund managers look for places to invest money in order to earn returns, thus in the copper market they invest due to the current and future demands and predictions of copper prices. There is always a correlation between the physical market of copper and the predicted demands of copper in the future, thus when the two meet the price of copper will go up and profits will be made. Fund managers also buy into copper companies — copper stocks are extremely popular methods for investing in copper.
Over the last 15 years copper prices have changed dramatically thus attributing to their volatility. Around 1998 copper prices were so low that many copper mining companies went under, the price to mine copper was more expensive then the profits gained for selling the copper. In the past five years copper prices per tonne have fluctuated by two to four thousand dollars.
The price of copper looks as if it will stay somewhat strong for the future due to the many uses of copper now. Basically the demand for copper will keep it afloat and the price will rise unless more copper is found. Copper could be in less demand if other metals are used alternatively for coppers current uses, with the little amount of copper being found this is a likelihood.
Don’t forget to also check out our silver price website.
I'll Personally Email You
For just 15 minutes a week, I'll teach you everything there is to know about investing in mining companies. Plus, I'll include free guides on building a passive income, preparing for inflation, getting out of debt fast, and finding real financial security.
Plus, if you ever want to talk or ask any questions, I'll respond personally -- usually within an hour. Oh, and all of this is free. Just sign up right now:
Copper Mining
Leave a comment
You must be logged in to post a comment.