It can be easy to forget about copper when considering an investment in precious metals.
Unlike gold and silver, it’s rare to see a TV commercial promoting copper bullion products. And with a few clicks of the mouse, you’ll discover dealers rarely market or even offer copper coins and bars.
Moral of the story? Strike while the iron’s hot! Once people start talking copper, it may be too late to invest at these prices.
In reality, copper is a common part of modern-day existence. Without the base metal, luxuries like air conditioning and electricity wouldn’t even exist.
In years past, interest in the metal was restricted to industrial uses. The only folks looking at copper were large commodity investors who purchased thousands of pounds at a time. (To this day, these investors don’t generally take possession of physical copper. Rather they buy, sell and trade paper contracts.)
Nonetheless, in recent years, interest in copper bullion has seen a steady increase. While industrial demand drives copper prices, individual bullion investors will have an impact in the years to come.
Many investors choose gold and silver for long-term survival purposes. While 90% junk silver tends to be a favorite among these investors, copper coins can be an incredibly useful bartering tool.
Three Simple Ways to Invest in Copper Bullion
1. Copper Bars – Available in a wide range of sizes – from 1-ounce to 10-pounds – copper bars are a stellar option for investors. Private mints often stamp these bars with unique symbols, designs and serial numbers to verify each bar’s purity.
2. Copper Coins – Another investment option is copper coins, which are great for trade and barter. Available in ¼, ½ and 1-ounce denominations, copper coins allow you to invest in metals with little expense. In relation to gold and silver, this low cost is one of the many reasons investors turn to copper.
3. Pre-1982 Pennies – Prior to 1982, United States pennies were comprised of 95% copper. Today, one of these pennies is worth nearly three cents. Like the investment options listed above, you can purchase pre-1982 pennies through Provident Metals – after sifting through your change jar.
Why Do Analysts Believe Copper Bullion is the New Silver?
One reason is the simple mechanics of supply and demand.
The demand for copper, especially in growing economies, is booming. In fact, it is expected that copper demand will double in the next 15-20 years. Supply, on the other hand, is falling and isn’t expected to meet this demand.
Add this to the devaluing dollar and a little bit of time, and you’ve discovered the magic formula for tremendous price growth in copper.
Like any bullion investment, there is the circumstance of having to store it somewhere.
Indeed, if you own a large quantity of pre-1982 pennies or privately minted coins, you should store them in a cool, dry place. Copper is highly reactive – more so than gold and silver. If not stored properly, your investment could be tarnished.
Practically speaking, copper is a simple, affordable way to prepare for the unraveling of the U.S. dollar.
Indeed, investing in copper bars and coins (along with 90% junk silver) is a resourceful, simple way to prepare for the very worst.
If one wants to buy tonnes of copper and have it stored for them, where would one do this? There are many companies that buy & sell precious metals and store them for their clients for an additional fee. But where can one do this for copper? If one is going to invest thousands of dollars in copper, storage becomes a significant consideration. Storage of precious metals is simpler in terms of space. But copper takes up much more space per unit of value.