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Thursday, February 10, 2011

Why is the price of copper going up?

Anybody who follows the prices of metals lately has recognized the tremendous rise in the price of copper in the past few months. As I posted last January, analysts are watching for the price of copper to rise to incredible, never-before-seen prices.

Most recently, copper has risen to as high of $4.63/lbs before settling where it is now at $4.50/lbs. Now, what has made the price rise to that level?

The several reasons the price of copper has gone up include:

  • Chinese infrastructure is creating a giant demand
  • The price of the US dollars is going down, so the value of copper gets inflated. 
  • Wall Street has been buying up copper for ETFs and ETNs
  • Several sources claim there exists an entity trying to corner the copper market. 
  • On the supply side, Chile, a major supplier of copper, has had a supply scare. 

Like I've said before, I can imagine the price of copper so much as doubling. For the moment, however, I am going to cash in my copper stash. I hope to take advantage of the money I can make now. "A bird in the hand is worth two in the bush" and even though prices are on the up swing, I plan to cash in NOW! 

Good Luck Scrapping!

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