![]() ![]() Here are the pros and cons of purchasing copper.įor the current price of gold at $1,815 an ounce, for one troy ounce of gold, you could buy about 1,406 troy ounces of copper bullion. In order to make a profit, you would need a large enough copper shortage for the copper price to rise past the premium you paid and net a profit. Buying copper is very speculative, if you are buying rounds of copper, you are paying almost double the spot price for each troy ounce of copper. Is copper a good long term purchase? Probably not. With all that should you be purchasing silver? It is worth only a fraction of the value of gold and silver by weight and has high premiums. The price can decrease just as quickly as it can increase.Īt the end of the day, only you can decide if copper is a good investment for you.As far as precious metals go, copper is one of the least sought after. While this might be a benefit for some savvy investors, for the average investor it provides more risk than reward. VOLATILE PRICEĪnother drawback of copper is that its price can fluctuate quite frequently. Unlike Gold American Eagles, which are composed of pure gold and therefore have value outside of their status as a currency, many copper coins aren’t worth their weight in copper because they’re not copper. The copper gives it its signature penny color, but the majority of the coin is made of zinc. Like the current United States copper penny, many coins are not made of 100% copper. Copper is often sold in large quantities because of its use in the construction and electrical industries, but that amount is not suitable for the average investor. While copper can be purchased in the form of bullion as coins or bars, it can often be hard to find copper in amounts that are feasible to store in your home or safety deposit box. DRAWBACKS OF INVESTING IN COPPER LARGE QUANTITIES Because copper is such a different precious metal than those two, it will diversify your portfolio that much more. Gold and silver are great investments, but the more you can diversify, the better. ![]() DIVERSIFICATIONĪnother benefit of copper is that it provides diversification in your precious metals portfolio. As the tech industry continues to grow, so will the demand for copper. Copper is used in a variety of industries, such as construction, where it is used to create plumbing pipes and electrical wires.īut copper is also used in the creation of many electronics, which are also constantly being created and developed. One of the biggest benefits of copper is that it is almost always in high demand. It has a variety of uses in the industrial space, so its demand is often high, but it doesn’t hold quite the same value as some other precious metals. SHOULD I INVEST IN COPPER?Ĭopper can be a very solid investment, but it also has the potential to be more volatile than other precious metals. While copper is not the most common precious metals investment, it can still be a valuable part of your investment portfolio. You likely think of copper in terms of electrical wiring, plumbing pipes, or US pennies, as these are common uses for copper! (Although pennis are not made comletely of copper.) Copper does have extreme value in construction industries, which is why scrappers will commonly strip wiring of its copper to resell it. In the world of precious metals, copper is often forgotten in the midst of its more illustrious relatives gold, silver, and platinum. ![]()
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