Copper

Copper is an essential metal used in a variety of industries, from construction and engineering to electronics and wiring. It’s also a highly-traded commodity on exchanges around the world, giving investors access to profits that come with trading this asset class.

When it comes to trading copper, understanding the fundamentals of supply and demand and price movements is essential. It’s important to recognize the factors that influence copper supply and demand, such as production levels, global economic activity, and geopolitical events.

Copper prices have been historically volatile, ranging from its highest recorded price of $4.94 per pound in March 2022 to its lowest recorded price of $2 per pound in January 2016. Although copper prices have fallen from their peak in 2022, they remain relatively high compared to historical levels.

The reasons for the surge in copper prices include increased demand from emerging markets, supply disruptions due to labour disputes, and higher energy costs. Additionally, a weakening US dollar has also helped to buoy copper prices.

Trading copper is one of the most lucrative options for traders, as it has excellent liquidity and provides reliable returns. Copper prices tend to rise and fall in line with economic growth, making it a great way to diversify your portfolio and make profits. Copper is also widely used in manufacturing, meaning that demand for this metal remains high even during economic downturns.

In addition to copper, there are several other metals that traders should take note of. Precious metals such as gold and silver are often used as investments and can provide steady returns over a long period of time. Industrial metals like iron ore, nickel and aluminium also have great potential for profits, particularly when the economy is strong.