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Much later, in July 1998, prices “had fallen to their lowest level since the Great Depression,” while an earlier production boom in the 1980s led prices to fall on the back of resulting oversupply. It all comes down to strategy, timing and, frankly, a bit of luck. Copper has been performing with volatility, but historically prices have been trending upward for decades. It’s been used for thousands of years with increasing demand as new technology springs up all over the world.

The metal was initially used exclusively in its pure state but was later used in the production of other metal alloys. Although it has similar properties to gold and silver, copper is significantly cheaper. The global copper supply is fueled by mining and recycling of copper products. When mined, copper is extracted from crushed ore and is furthered refined through smelting. Many supply and demand factors have contributed to the movement of historical copper prices over the years.

For example, a report from the US Geological Survey notes that the Vietnam War meant strong demand in the mid-1960s and early 1970s, leading to price controls to limit domestic copper prices. On that scale, historical copper prices have dropped significantly since the 1910s. As with most investments, supply and demand dictate in large part how copper prices move. Mine outputs, while increasing in some areas, may decrease in others as they each exhaust their copper supply.

Copper Demand By The US Housing Market

Factors that affect US housing demand, including nonfarm payrolls, mortgage rates, US gross domestic product (GDP), and demographics, also play an important role in determining copper demand. Melissa Pistilli has been reporting on the markets and educating investors since 2006. She has covered a wide variety of industries in the investment space including mining, cannabis, tech and pharmaceuticals.

You can also learn about the national economies of countries like China and India, both of which are key players in the copper market. Finally, natural disasters like earthquakes and landslides can slow down mining output. Copper traders should pay attention to geopolitical news that affects the mining industry. While the Magnificent Seven have dominated market momentum in recent months, it’s not true that they are the sole drivers of the recent rally in equity markets. The latest US CPI reading hasn’t gone how the Federal would have hoped. Consumer prices came in higher than expected in February for the third month in a row.

1. The economic principle of substitution represents a risk of investing in any commodity, and copper is no exception.
2. Its utility coupled with a low price makes copper a low-risk investment favoured by international investors.
3. The price of copper may depend greatly on the ability of these countries, as well as other emerging economies like Brazil.

Therefore, when making investment decisions, it is important to consider that the price of copper significantly relies on the wider performance of the global economy. Because infrastructure represents such an important part of the demand, emerging markets are a key driver of copper prices. Fast-growing countries like India and China are accumulating vast amounts of wealth as their economies grow. It’s mainly used in electrical wiring, roofing, plumbing, and cooking utensils. Copper’s widespread usage began during the Copper Age, from 3500 to 2300 BCE.

Copper prices are determined by the demand for copper, primarily commercial. Such demand is driven by the construction and technology industries. Then, the rate of supply through copper mining and production determines what price the commercial consumers pay.

News & Analysis

In the case of brokers and copper derivatives, the spread charged on the copper instrument may also contribute to the price difference. Events like miner strikes can also produce supply disruptions and higher prices. The company reports its Q4 results after the closing bell on Wednesday, the 21st of February. We preview what to expect from Nvidia’s earnings and analyse the technicals of its stock price. Nickel, lead, and iron also competes with copper as substitutes in some industries.

Check the price of copper with Money Metals Exchange’s interactive live and historical chart. The chart below allows you to check copper spot prices dating back 20 years up to the current date. With regard to supply, copper mining is mainly concentrated in Latin America. Chile is the world’s largest copper miner, producing more than 5.8 million tons of metal annually. The figure is more than double the amount of that of the second-highest producer, Peru, which supplies more than 2.4 million tons of copper per year.

It’s worth noting, however, that many experts say it’s wise to invest in multiple metals to diversify and have something to fall back on if one metal’s value decreases. Copper is also a native metal, which means it can be used in its natural form. Even copper scrap has value, as copper is one of the few metals whose value and function do not dwindle after recycling. Marko has been working on the road for over 5 years, and is currently based in Europe. Alongside writing and editing, Marko works on projects related to online technology and digital marketing.

You can see historical copper prices, real-time price and the metal’s year-to-date performance at the top of the page. The building construction industry is responsible for close to half of the US copper supply. Speculators should pay close attention to trends in this market for clues about future copper https://www.dowjonesrisk.com/ prices. As the metal is a key material in the construction industry as well as for consumer goods such as electronics and cars, copper demand tends to be economically sensitive. As such, when the global economy slows down, the demand for the metal usually decreases, negatively weighing on its pricing.

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Copper is a brownish-orange metal used in countless applications. Commonly found in the electrical industry for its conductive properties, copper is also used in ship lining and jewelry. Construction industries use copper for roofing, doors, and handrails, and its antimicrobial and biostatic properties make it perfect for frequently-touched surfaces.

Follow our live chart to always keep up to date with the latest copper spot price.

One standard ounce of copper is equal to almost exactly 28 grams. One troy ounce is rounded to 31.1 grams — this unit is typically used on exchanges and by bullion dealers. A halt of growth in emerging economies would almost certainly have a negative effect on copper prices. Due to its versatility and importance for many industries, the global demand for copper has been continuously growing over the past few decades. More than 60 per cent of overall copper consumption occurs in Asia. China, with its huge manufacturing sector, is by far the biggest consumer of the metal in the world.

There’s some market correlation between the value of the dollar and copper prices, too. Miners are finding less copper in digs, and unearthing new copper sources through mining isn’t as easy as it sounds. The most abundant supply of copper comes from the U.S. and Chile, but even in those areas, this metal content isn’t infinite. Political, environmental, and labor issues can have a big impact on copper prices. South America supplies a significant amount of copper, particularly Chile and Peru.

Future projections of copper supply and demand are available via various resources. Read on to find out about how copper prices compare to precious metal prices like gold and silver. We also explain the main price drivers of copper, how you can get copper via bullion dealers, and how you can keep up with copper price news.