Do you know that first mineral extracted from the earth was copper?
Since very starting, copper has been precious to mankind. Initially, it was used to make tools, weapons and utensils. Later, as an alloy, it was helpful in bringing about the Bronze Age. Today, it is one of the largest used metals in the world, following only steel and Aluminum.
It is highly used in electrical wiring. It is very ductile, highly resistant to corrosion and one of the best conductors of electricity. It is also commonly used in the production of construction material, alloys and telecommunication.
Price of copper depends on a number of factors, like geopolitical events, trade policies, global economy and industrial growth. Besides, events like construction of new infrastructure, supply disruption etc. also affect price of copper.
The metal is traded as a commodity mainly on LME (London Metal Exchange), CME (Chicago Mercantile Exchange), SHFE (Shanghai Futures Exchange) and MCX (Multi Commodity Exchange of India); LME is used as a benchmark across the world. Copper is also one of the highest traded commodities on Indian commodity brokers.
Why copper is a smart investment choice?
Copper is a primary component for the manufacturing of electronics and construction material. It is an industrial metal with high use and has global appeal. The rapid industrialization and electrification in emerging economies will increase the demand for copper.
Copper is also considered a leading indicator of health of global economy.
Why is copper commodity a wise investment for an Indian trader?
The various uses of copper make the metal important for the progress of industry, information technology and electrification.
Asia already consumes about 50% of the world’s copper. With growing industrialization and urbanization in China and India, the demand is expected to increase even further.
The developing countries are investing huge amounts in infrastructure sector increasing demand for copper. This is expected to make price of copper in India high in the short term and strong in the long run. Indian traders can use MCX copper as reference. As the commodities market grows and per-capita income increases, demand for industrial metals will remain higher.
To know more about MCX and Metals Trading, feel free to contact us. We have providing tips to investors and traders from past many years and have a team of experienced analysts and researchers.
Image Source: cdn.pixabay.com