Copper is unique among other metals because it can establish the state of economic growth in a given country. For example, if the demand for copper is increasing, then the economy is expanding. In fact, the World Bureau of Metal Statistics has cited an 8% increase in copper consumption during 2010 alone—most notably in Asia—and since then, the demand has continued to climb. Because copper is so vital for construction and electric wiring, it is no wonder this precious metal maintains its significance alongside silver and gold in futures investing. Copper futures can be used as a hedging tool for price mitigation. Copper futures also offer advantages like central clearing and transparency of price among traders.
Copper Contract Specifications
→ Click Here for Copper Contract Specifications
Copper Facts
Copper is one of the world’s oldest and most mined commodities, just behind aluminum and iron. Humans have been using copper for more than 10,000 years and its origins can be traced back to Cyprus, Greece and Egypt. Copper is the most popular metal to be used for industrial purposes. It is the best conductor of electricity and is resistant to corrosion. Copper is known to be biostatic, which means that bacteria cannot grow on it. Therefore, copper is used in items like door handles and food surfaces for hygienic purposes. Global copper production has been on the rise since 2011 and the top producer is Chile, followed by Peru and China. China is the top consumer of copper.
Source: Barchart
Last updated May 2013.