Although a unique precious metal with a rich history intertwined with the development of humans, copper metal is often overlooked by investors. The most obvious reasons for this are due to the copper price being less than its competition—precious metals like gold and silver—but these are often short-sighted reasons. Copper metal is useful to technology and investors.
With historical estimates dating the first discovery of copper to approximately 9000 BCE, during the Bronze Age, copper has long been a part of human history for its use in tools, utensils, wealth, and more. Ever since that time, the metal has been used in various industries and for numerous reasons. One of the primary reasons for this is that copper is what is known as a native metal—its natural state and pure state are nearly the same. Furthermore, the metal is hardened upon impact, making it flexible and useful for the construction of tools and more.
Now, why does this make the metal enticing for first-time investors? First off, if your portfolio only consists of precious metals such as gold and/or silver, it would be in your best interest to diversify with the likes of copper. The primary reason for diversifying your portfolio is that if, by chance, the value of one of your assets plummets in value, you don’t want to have that be the only asset you’re relying on. That’s why many experts believe it’s a good idea to have a precious metals portfolio that features numerous metal assets. With the copper price being relatively low right now, it makes for a low-risk asset that is simple to add to your portfolio in large sums.
Second, experts in the industry are currently expecting the value of copper to dramatically increase within the next few years. What will be the cause of this expected growth? This question requires a two-fold answer, increasing industry demand for the precious metal and dwindling global supplies.
1. Increasing Demand
Developing countries such as China and India are heavily relying on the metal for technological and industrial purposes. Although companies within the Chinese sector seemed to bottom out in recent years, regarding copper value and use, many experts expect to see a corollary growth between Chinese industries and copper prices. If any industrial contracts were to be signed between the United States and China for manufacturing purposes, this would be seen as meeting expert expectations.
2. Dwindling Global Supplies
The total global reserve of copper has seen noticeable decreases over the past few years, with far more copper being used globally than being produced during recent quarters. Most market experts don’t see this changing much on an industrial scale, so they believe a bullish market will begin surrounding copper, and the copper price will steadily increase from quarter to quarter. Because of the short supply, the market will constrict, thus making the precious metal more valuable in the immediate future.
However, with these noted market expectations, it should be stated that the value of copper will not skyrocket—it will increase, but not to astronomical values. While it will make for a good addition to your portfolio, possibly providing you with some positive gains over the next few quarters, it’s not something you should sink all of your finances into.
If you’re unsure of what to invest in, copper bars and rounds make for a great addition to your portfolio. Not only are these copper items aesthetically appealing, but they will make for a fine complement to assets you currently possess. Products offered are .999 Fine copper and range from various designs to numerous sizes—1 ounce, all the way to 10 pounds. It’s highly recommended that you invest in bullion copper, as scrap copper might not be either pure or in quality condition.
The benefit provided when investing in a precious metal like copper is that it is a low-risk investment. Compared to a high-risk metal like gold, you can buy various quantities and not feel a deep sense of worry over sudden market shifts. With the addition of copper bullion, you can expect to see diversification brought to your portfolio. With this greater sense of security, you’ll be able to sit back as your assets grow within the market. If you have any particular questions about the copper bullion products offered by Provident Metals, be sure to reach out and contact us with any questions.