We usually think of gold and silver, and sometimes platinum and palladium, as precious metals: they are rare, or seen as alternative currencies, or both. But "increasingly, copper is a precious metal" too, says Alan Livsey in the Financial Times.
Copper is becoming scarce. The yield of copper from each unit of ore mined is dwindling. In 2010 the 15 top producers' reserves boasted an average yield of 1.2%. By the end of 2016, the figure had fallen to 0.72%. Miners are therefore scrabbling to locate new supplies.
On the demand side, the latest fillip stems from the car industry. The electric Tesla Model S requires three times more copper wiring than an internal combustion engine, says Frank Holmes of US Global Investors on BusinessInsider.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
More broadly, as the rapidly growing middle classes in emerging markets stock up on goods such as smartphones, cars, dishwashers and air conditioners, the world will need a lot more electricity and copper is one of the most conductive metals. The deficit in the copper market may not dissipate in a hurry.
-
When is the “Bed & ISA” deadline? Cut-off dates for major investment platformsThe “Bed & ISA” deadline varies from provider to provider. We share a round-up of the key dates across major investment platforms
-
Spring Statement: what could Rachel Reeves say about pensions?The chancellor will deliver her Spring Statement on 26 March. We look at whether there will be any announcements on pensions that could affect savers or retirees
