Copper Bullion vs. US Dollar
Let’s face it the US government is debasing the US dollar, and if you think these idiots in Washington are going to stop their unchecked spending spree you are sadly mistaken. The US dollar has lost 95% of its value since the inception of the Federal Reserve. China recently publicly announced "the U.S. Dollar as a thing of the past". I am not advocating putting all your paper dollars in copper bullion, but hedging yourself against the devaluation of the dollar makes sense. Washington is about to raise the debt limit again thus causing further erosion of the dollar against hard assets such as crude oil, gold bullion, silver bullion and copper bullion.
Who Invests in Copper Bullion?
Copper bullion is a niche area of collecting that crosses between coin collectors, metal collectors, investors and art types. Bullion is a metal traded in near pure form, so like silver bullion and gold bullion, copper bullion takes the form of bars, rounds and coins containing either pure copper (99.99%) or in the case of copper coins 95% to 98% pure copper.
Copper is not a true precious metal, but it has a long history as a monetary metal going back to the most ancient of times. Even today, every US coin contains significant amounts of copper with only one surprising exception. The coin everyone thinks is copper, the “copper penny” is mostly made from cheaper zinc and only clad in a thin layer of copper. Two types of copper bullion have emerged as investors and hard money advocates seek to diversify their metal holding.
Copper Penny Bullion
Since 1982 the US Mint has been making zinc pennies with only a little copper coating. True copper pennies (95% copper) minted up to part way through 1982 contain nearly 2 cents of copper at present price levels. Effectively, like junk silver these copper pennies are worth more dead than alive. Given the choice between saving a copper penny or saving a zinc penny the informed investor will save that copper penny aside and spend the zinc penny with lower intrinsic value.
Similarly, Canadian pennies to 1996 were 98% copper before the Royal Canadian Mint debased them to zinc and then steel cores with a thin copper shell to maintain the look of the coin. Copper pennies are government backed with a well known fineness and weight. Copper pennies are now traded on eBay and through a variety of online dealer.
Copper Bullion Bars and Copper Bullion Coins
A variety of manufacturers and private mints are now producing copper bullion art bars and coins. Due to production and distribution costs these copper bullion bars and coins sell for well over spot price, Copper bullion does however have an intrinsic value far greater than paper investments like cash, old stamps, or bottles of wine – all of which are completely worthless when subjected to heat or fire.
Why Buy Copper Bullion?
Copper (CU) is a base metal not a precious metal, so the word “bullion” is used by us as a marketing term and express the value of copper bullion bar, round or ingot. It is the most valuable metal in our modern-day lifestyle and standard of living. Copper is the most versatile and durable of all metals and has been called “man’s eternal metal.”
The value of copper is illustrated by the following facts:
Copper is used for more than plumbing and wiring. The construction group for copper use is only 40% of all copper consumption.
The construction use not well-known also includes roofing materials ,brass fixtures , lighting rods, heating and cooling systems. The average home has about 400 lbs of copper.
The other value of copper can be organized into four more different groups of Cu is ;
Electronics consumes 25% includes computer chips increasingly using copper in their production, microwaves, TV’s, computers.
Industrial apparatuses 12% involves deep-sea oil exploration , oil drills, anything that involves saltwater. Copper as an exceptional resistant to corrosion. Nuclear fuel canisters can be made with copper to add extra safety in the energy field. The antimicrobial properties of copper are expanding in the healthcare field.
One very important fact about copper is, Cu is the best conductor of heat and electricity than any other metal except silver. Silver is not applicable because of its cost. This adds to the value of copper.
Transportation uses 13% the average automobile has about 50 Lbs to copper. The modern nuclear sub has 200,000 lbs, locomotive has 200,000 lbs, subways, trolleys, buses uses 9,2000 pounds, 2% of a Boeing 747-200 airliner consists of copper. In the weight includes 625,000 feet of wire.
General use 10%. Jewelry gold is soft and needs some copper to give it strength. Copper cookware is preferable because of it supreme transfer and uniform heat source. Some examples are, coffee tables, dining tables, chairs, benches, lamps, lighting fixtures, picture frames, mirrors, fireplace equipment, kitchen ware, and sculptures.
In the clothing and cosmetic market uses the copper features of the reddish and orange color to give their products the mental look and shine that copper is known for.
The Statue of Liberty consists of 179,000 pounds of copper. It has only lost .005 of an inch in one hundred years of the harsh elements of the New York Harbor.
Some so-called experts will have you believe that the current mining is enough for our needs. They are not considering China insatiable interest in stockpiling copper for their developing ambiguous growth. China has stockpiled a third of the world’s copper supply in recent years, but has gone thought a destocking cycle in the last nine months. According to some experts Copper could surge to record highs because of Chinese demand. Really, you do not need to have an expert tell you that under-developed China will need enormous amount of Copper as their Chinese people increase their standard of living.The value of copper is surely going to rise.