Copper is among the most useful and versatile base metals in existence, yet its popularity as an investment vehicle runs a distant third to gold and silver. Yet, that doesn’t mean you can’t see healthy returns from copper. Proven and Probable is here to help you figure out how.
For all intensive purposes, copper may become the world’s most sought after metal. In the next 25 years more copper will be consumed than in all of recorded history. Currently, there are about 2 weeks of above ground supplies on the market and there are growing concerns from where copper is being extracted due to geopolitical risks. Copper is used for many applications, including electrical wiring, computer components, heating systems, construction, and automobiles. Its most popular application is acting as a conductor of electricity. It ranks second behind silver as an electrical conduit. However, copper is chosen considerably more often than silver for electrical work: its relatively low price compared to other metals makes copper an attractive choice not only for industrial and commercial applications, but also for investments.
China is the world’s largest consumer of copper, due in large part to its rapid urban growth. The country accounts for over 40% of global demand. China’s stockpiling of refined copper has contributed to a decrease in its demand recently. However, while economic growth in China has slowed, it continues to remain strong, which may be a good indicator of demand in the future. Couple that with India’s rise as a copper consumer and a proposed $1 trillion in infrastructure spending over 10 years, and you’ll see that there should be demand for copper in the years, if not decades, ahead.
How to Invest in Copper
Purchasing copper bullion is simply not convenient for investors because copper lots are prohibitively large (25,000 troy pounds). Therefore, copper mining stocks become a much better option to add to your portfolio.
Proven and Probable helps you explore copper equities – both junior explorers and mining producers. Copper stock in junior mining companies offers some of the greatest potential reward but requires increased due diligence as a speculator. The recent past has eliminated some players, so the key is to look for projects that have the potential to scale.
Because of industrial demand, investments in copper stock are actually investments in economic growth. But which operators are positioned well enough to supply that growth? Copper spot prices have suffered, so some mining companies may be operating on a knife’s edge. Mine depletion has also been a concern as copper miners are close to exhausting their oxide deposits, which are less expensive, and are now being forced to extract from their sulphide deposits which are more expensive. These issues can make investing in copper stock challenging, but navigating them with careful consideration is precisely where Proven and Probable can help.
Copper Stock Expertise
Proven and Probable helps make it easier for speculators to find attractive copper stock opportunities. Our informative reporting comes from a combination of industry research, interviews with copper mining operations, and connections with passionate metal experts who choose to share their wisdom and research.
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