What is Copper?

What is Copper?


Welcome to the Investors Trading Academy talking
glossary of financial terms and events. Our word of the day is “Copper”
Copper is a metal that has been known all around the world since ancient times. From
West Africa to China to Europe to Central and South America, copper has been mined and
worked continuously from as far back as 8,700 BC. As one of the few independently occurring
metals, copper has been used in a multitude of forms, from prehistoric pendants to modern-day
piping and more. As a highly versatile material, copper can
conduct electricity and is a necessary trace mineral in all living things. It also possesses
the ability to destroy germs on contact. Copper is mined in large open pits, and Chile and
the U.S. have extensive reserves that could be exhausted within the next 50 years. The
New York Mercantile Exchange is where copper contracts are traded, states that copper is
the third most widely used metal in the world. Like every commodity, copper has its own ticker
symbol, contract value and margin requirements. To successfully trade a commodity, you must
be aware of these key components and understand how to use them to calculate your potential
profits and loss. Copper is extracted from open pit mines. The
demand for copper in India and China plays a significant role in determining when, not
if, copper reserves will be depleted. Current copper calculations suggest that the earth
will run out of copper in as little as 61 years. Copper is an integral part of printed
circuit boards, lead free solder, microwave ovens, wave guides, integrated circuits, electromagnets,
wiring and piping. Copper is an industrial metal essential to
urban modernization. While countries such as China and India strive to develop a western
lifestyle, the need for copper will likely increase at the expense of a dwindling supplies.
As alternatives are found to replace copper’s applications, the price of copper will continue
to be volatile.

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