Wednesday , 7 December 2016


The Problems With Copper Seem Insurmountable – Here’s Why

Copper is among the three most used metals in the world, and high quantities of the red metal must be mined every year but the problem is that copper is not being discovered fast enough to meet upcoming demand. There are several reasons for this as the infographic below illustrates.

The above edited excerpts come from the infographic below* by VisualVapitalist.com originally entitled The Looming Copper Supply Crunch which can be seen in its entirety HERE.

*http://www.visualcapitalist.com/the-looming-copper-supply-crunch/
Related Articles from the munKNEE Vault:
1. Copper’s Largest & Most Important Producing Countries

Copper is one of the most important and popular industrial metals in the world. With 3% per year production growth since 1900, approximately 16 million tons of the metal was produced in 2011, according to the International Copper Study Group. Below, we outline some of the largest and most important copper-producing nations across the world:

2. Why Copper Prices Have Increased So Dramatically Over the Last 10 Years

In this infographic we explore why copper prices have increased by 4x over the course of 10 years.

Copper is one of the most widely used metals on the planet, and has been for more than 10,000 years. Today, it’s the nervous system of our society – of our cities, homes, tools and toys. The simple truth is that the western lifestyle is completely dependent on copper. Here’s why as depicted in the infographic below.
Gold and silver continue to receive the lion’s share of press headlines and investment writers’ attention. [While] our team believes this theme will continue, there are other assets which benefit from a weak dollar, especially if a weak dollar is combined with some decent economic activity. [One such asset] is copper, a base metal that, like gold and silver, [that will] appreciate with inflation and has tremendous potential for increased demand given the theme of 2012 – economic growth. [Let me explain in some detail why we think that is the case.] Words: 1150
About two years ago, I looked through a BHP Billiton presentation which listed the number of years remaining for particular commodities. It was not an analysis of “peak” commodities as such, just a report on when various commodities would be completely, 100% depleted based on current usage rates and reserve assumptions. Copper in that report was determined to be scarcer than oil! [What does that mean for the future well-being of the U.S. – and the world?] Words: 13806. Will Copper Replace Gold as World’s “Most Valuable” Metal?

I am convinced that we are still relatively early in a secular commodity bull market. In fact, with the modernization of Chindia and numerous other less-developed nations, I expect this bull market will be one for the record books. Fundamental demand coupled with inflation will push resource prices to unimaginable heights. Words: 805

7. This Interactive Table of Commodity Returns Is Easy to Use – Try It

Natural resources are the building blocks of the world, essential to progress and prosperity. These commodities, like all investments, can have wide price fluctuations over time. The interactive table provided shows the ebb and flow of commodity prices over the past decade and illustrates the principle of mean reversion—the concept that returns eventually move back towards their mean or average. [Take a look.]

8. A Comparison of the Physical Properties of Gold, Silver, Platinum and Copper

This article…looks at physical gold, silver, platinum and copper regarding their respective versatility of use, durability, fungibility, store of value, liquidity and aesthetics [which will] yield a new perspective on precious metals (including copper). Words: 850