One of the most widely used industrial
Presently, copper is used in building construction, power generation and transmission, electronic product manufacturing, and the production of industrial machinery and transportation vehicles.
Copper wiring and plumbing are integral to the appliances, heating and cooling systems, and telecommunications links used every day in homes and businesses. Copper is an essential component in the motors, wiring, radiators, connectors, brakes, and bearings used in cars and trucks.
The world's production (supply) and consumption (demand) of copper have increased dramatically in the past 25 years. As large developing countries (China, India, Brazil, etc.) have entered the global market, demand for mineral commodities, including copper, has increased dramatically!
Because of its importance in construction and power transmission, the impact of any copper supply disruption would be high.
When you see global copper prices falling, it's an overall indication of economic / manufacturing slowdown, hence its reputation for being a major economic activity "barometer"!
Copper ETFs have grown quite a bit in the last several years and have become much more liquid, that is, easier to buy and sell on the open market. We have access to several very large ETFs specializing in Copper exploration, mining and global distribution.
Generally Copper prices range from $1.50 to $4.50 per pound - they're currently trading at about $3.10 per pound.
From early 2004 to late 2005, Copper prices went from $1.00 per pound to $4.00 per pound which comes to a profit of $75,000 per contract purchased! You can imagine having been buying on the way up - many made millions of dollars in this two year period.
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