General Information on Copper

Copper (/ˈkɒpər/ kop-ər) is a chemical element with the symbol Cu (from Latin: cuprum) and atomic number 29. It is a ductile metal with very high thermal and electrical conductivity. Pure copper is soft and malleable; an exposed surface has a reddish-orange tarnish. It is used as a conductor of heat and electricity, a building material, and a constituent of various metal alloys.

The metal and its alloys have been used for thousands of years. In the Roman era, copper was principally mined on Cyprus, hence the origin of the name of the metal as сyprium (metal of Cyprus), later shortened to сuprum. Its compounds are commonly encountered as copper(II) salts, which often impart blue or green colors to minerals such as turquoise and have been widely used historically as pigments. Architectural structures built with copper corrode to give green verdigris (or patina). Decorative art prominently features copper, both by itself and as part of pigments.

Copper(II) ions are water-soluble, where they function at low concentration as bacteriostatic substances, fungicides, and wood preservatives. In sufficient amounts, they are poisonous to higher organisms; at lower concentrations it is an essential trace nutrient to all higher plant and animal life. The main areas where copper is found in animals are tissues, liver, muscle and bone. Read More

Copper: The Bull Market Continues

Only a true contrarian investor could like copper.  Copper prices are down. Copper prices have fallen $4.50 per pound to just over $3 per pound between August and September.

Copper is out of favor. Anytime the price of anything is falling – gold, stocks, bonds, etc. – the herd assumes “something must be wrong.”

The outlook for copper is getting worse. Investment banks, whose research drives the majority of money managers’ decisions, have been consistently lowering their copper forecasts. Goldman Sachs, Morgan Stanley, and Credit Suisse all cut their price forecasts within a week’s time.

Simply put, global economic malaise and fears of it getting worst have not been good to copper.

But Mineweb, one of the leading global commodity and mining research providers, says about copper, “Weak demand in the short term but stronger medium and long-term prospects.”

So what’s the verdict on copper? Buy, sell, or hold. As with all potential commodities, future of copper and will be determined by supply and demand. Read More