Copper Prices and Should You Buy Copper
Copper At This Time
Copper is one of the most used metals in the world, and the demand for it, while fluctuating, depending on the economic environment, will continue to surge for some time into the future, as copper uses aren't going to go away - ever.
Much of the deciding factor for whether we should buy copper in the near future will obviously be connected to the housing market and when the global economy starts to rebound. Of course it depends on how knowledgeable you are of commodities and how to invest in them, as you can make money while the price of copper is going down, and when the price of copper is going up. So either way, you can make money.
With copper being used in so many things, demand is always there; it's only the degree of demand and the ability to supply it that determines the price of copper and other commodities.
One sector that has a major influence on copper prices going up or down is the housing market and new housing start ups.
So watching that is one important factor in copper supply and demand, although far from the only one.
Copper used in building homes and the appliances offered in new homes is much of the demand from the housing industry.
When researching copper news, be sure to include the housing market starts as part of your research, as it's a major part of copper prices.
Uses of copper driving demand
Some of the uses that drive copper production and the profits of copper companies, as mentioned, are connected to the housing market and the number of new homes being built.
Things like copper pipe, copper fittings, copper wire, and other elements of copper and its filling of the needs of copper plumbing are all uses of copper and making copper products.
Uses of Copper
Other copper uses in the copper industry
Some of the uses above are pretty obvious, but others connected to it just within the housing industry are things like a copper sink, copper door, copper bar, copper springs and copper connectors of sorts.
while they may not be a huge part of any one house, when added together across not only America, but across the world, it drives significant demand.
I'm only primarily showing you things within the housing industry that drives copper demand, although there are way more than the housing industry that wants or needs copper.
Copper products are numerous, and no one person could ever find out how many uses there are for copper.
General copper sales are also driven by designs in styles like hammered copper, polished copper and copper finish. The key for making a decision to buy copper is in knowing the trends of the major uses.
Copper production is the supply side of copper metal, and it's all about copper and copper mining and copper mines.
One thing to keep in mind here is the availability of credit and financing in the industry. Overall it takes approximately 10 years to open any metal mine, and when there's no money available, and the demand continues, like it is with copper, it ensures supply won't meet that growing demand going forward.
Don't think in terms of timing the market here, just be aware that at this time funds aren't available to mining companies to open up new mines, and so that will be a factor for years into the future.
Copper Range or Copper Cycle
There will always be cycles in relationship to supply and demand for copper, and the copper range or copper cycle can be followed and identified pretty easily with the major uses I mentioned earlier (although there are other major uses of copper you'll need to know about).
But just understand there is a copper range or cycle, and following it closely will allow you to understand overall price movements of copper, along with demand.
Want to be a copper king?
One factor that always must be considered with the ongoing commodity bull market, which will include copper, is the emerging giant market of China. They aren't even close to supply the needs of their people with new housing which fits the lifestyles of the emerging middle class, and that will dramatically affect commodities for at least a decade, and possibly up to two decades, depending on how long the current economic slowdown lasts, and how severe the future ones will be.
If you want to be an investing copper king, you can build up significant wealth by simply watching China and its housing and middle class needs. That, far more than all other variables, will be the primary driver of copper prices and copper demand.
Future of Copper
Copper will continue to be one of the most important metals going forward, and will remain a very important part of our lives, as it has been for thousands of years.
One little secondary thing you can consider for investing in copper is the scrap copper area. Copper sales in this area can generate significant secondary income, and if you have access to it, don't neglect to take advantage of the situation.
In this area copper sales can make you a lot of money, and you can find it in a lot of products and copper works made for a variety of reason.
You can sell copper almost at copper net once you buy it as scrap, and can get a nice profit from it.
Do a little research and look at commodities as the most profitable investment for the near future, as they will be. Copper is one of those commodities that will assuredly help investors build their wealth.
After doing your homework, then take a small portion of your money you can afford to lose, and take some small steps toward investing in copper while learning how it all works.
Once you understand the copper market and follow it, you will have a good handle on the possibilities of wealth building connected to it.
More by this Author
Why Silver Prices are Going Up A large number of investors have been focusing primarily on the economy rather than the growing dangers of inflation, and that has been part of the reason silver prices have remained...
The recent announcement that Congress has been approached by the Obama administration in order to receive permission to alter the metal content of pennies and nickels, confirms the idea that has been circulating for...
Why a home cleaning business is such a good business to launch - it's inexpensive and very profitable.