Global Markets

The Copper Allure in 2017 and Beyond

The Copper Allure in 2017 and Beyond

In the decade from the 1970s to the 1980s, oil took a turn as the most important resource that nations could not do without. The reason was simple. As oil production capacity expanded globally, there was a need to fire more engines and keep the plants running. It only meant one thing: more demand for the black gold.

Fast forward to the 21st century and you witness the rise of the Internet and its ubiquitous roughshod ride across the globe and human civilization. This meant that technology became a rallying point for the millennial generation and the world could not avoid taking note.

Who needs Copper?

Copper is a necessary ingredient for our daily life in this modern world. It is found in the things we use every day and several others that lives revolve around.

Copper is used in producing automobiles, heating systems for the home and industrial complexes. Copper is put to use also in electric wiring and gadgets like TV sets, radio, laptops and other appliances.

Understanding the use of copper brings to the fore the fact that it is bound to grow in leaps and bounds, with regards to human application.

Gazing Into the Future

As the future unfolds before our very eyes, we see that internal combustion engines are losing the market to solar powered and photovoltaic engines. What this means is that as electric cars gain grounds, the global scramble for oil will lose steam, albeit gradually but surely!  This will certainly open up the demand for copper and keep it on the shelf of prominence in our world.

An average electric car uses an additional 90 kilogram of copper compared to the gas-powered car. As the likes of Tesla ramp up production to close to a million units per year, there is an inevitable market sprouting for the copper gem.

What You Stand to Gain

A slew of companies and other corporates are big players in the copper dimension, and as the demand for their products soars, their returns will grow. Rio Tinto, BHP Billiton, Anglo-American, and others, are bound to see better days if their management team remain efficient.
When companies have an assured market and their productivity spirals, it leads to an upswing in their turnover. Increased turnover prepares the ground for better profitability if the cost of production and operating efficiencies are maximized.

The trajectory of these companies will be headed towards better dividends and higher market values. The sum of these indices is better shareholder values and wealth maximization.

On the cutting-edge, ETFs that are copper –tied also present a frontier to appreciate, as long as they are reputable and well-run. If you do your homework well on these, you can also reap the bounties they have to offer.

Other metals like Lithium and Zinc, are sharing the spotlight with copper.

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