Why Investors Turn to Copper as an Inflation Hedge

Every year, a vast amount of copper is used by the global economy toCopper-USFS manufacture a wide variety of goods. It’s a major ingredient in big-ticket consumer goods like autos, appliances, electronics, and new homes. Simultaneously, copper is also gobbled up for many industrial uses including telecommunications, utilities, construction, and industrial machinery.

The original article has been edited here for length (…) and clarity ([ ]) by munKNEE.com – A Site For Sore Eyes & Inquisitive Minds – to provide a fast & easy read.

Today’s infographic comes to us from Kutcho Copper, and it shows the red metal’s important role in the economy, as well as why it has become a famous economic bellwether.

Related Articles From the munKNEE Vault:

1. Forget Gold! Got Copper? Super Boom In Copper Demand Coming – Here’s Why

Some basic math shows that the coming electric car boom will create a super boom in copper demand. In 2016, EVs made up 1.6% of the total U.S. car market and it is expected that EVs will make up 4% by 2021 and – get this – by 2030, the adoption of EVs in the U.S. will be 34%. What does that mean for copper demand?

2. Marin Katusa: “I expect to make +300% in coming copper rally!” Here’s Why & How

I plan to accumulate stakes in some of the world’s best copper deposits. Why? Because copper has become a great way to invest in the green energy super-trend and I expect to make at least 300% in the coming copper rally over the next five years.

3. 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 as this infographic illustrates.

4. 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:

5. 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.
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?]
9. 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.

10. A Direct Comparison Between Gold, Silver, Platinum and Copper

Here’s an updated analysis of physical gold, silver, platinum and copper regarding their respective versatility of use, durability, fungibility, store of value, liquidity and aesthetics.

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