While most metals' prices are based on speculation and a retail demand based on traditions copper is different. Copper is arguably the most functional precious metal. Not only is copper used in coins and jewelry, it is the only precious metal used in home construction. Copper is used in plumbing in homes across the planet. Since most people consider plumbing a necessity it can also be said that copper's demand is based on a need and not just a want. Because of this copper is considered a less risky investment than metals such as gold and silver because it will always have an underlying value based on serving a function in society.
Copper's Future
The world's ever increasing awareness of human impact on the environment suggests that copper with be used heavily far into the future. Copper is easily recycled, much easier than other metals or building products. About 80% of the copper ever mined is still being used today.
Copper's uses are continuously increasing. While humans have used copper for 4,000 years, they may also use copper for 4,000 more. Because of its conductivity and relative abundance copper has been the main medium for transporting electricity. Recently companies such as Motorola and IBM have begun replacing aluminum interconnects with copper interconnects to increase conductivity between microchips. Broad increases in the amount of electrical wiring used for homes as well as cars are also uses for copper in the future.
Current Copper Prices
However in recent times the price of copper has jumped. While global construction has certainly increased as well it has not risen as fast as copper prices. One possible cause of this is "panic buying" Hurricane Katrina and the war in Iraq may have swayed people in the US to put their money into something safer than the US economy.
Copper has been used for millennia by humans. From simple hand tools to medieval cannons to electrical circuits, copper has withstood time as the most functional metal on the earth. Prices may rise and fall, but copper's long term value will still remain for years to come.
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