Monday 24 June 2013

Investors Choose To Buy Copper Bullion

By Lila Barry


Despite the term, this is not strictly a precious metal but a base metal. The term is used as a marketing description, and is helpful when defining values as the bars, ingots and rounds are in set weights. Many investors are still investing in the precious metals, but are also choosing to buy copper bullion.

This has always been a popular metal, and for many years has always featured in coinage. Many collect the coins with the higher copper content, and these do have a metallic value apart from their face value. However the purity of these coins is only slight compared to that of the ingots and bars.

For the smaller investor certain mints do produce high purity coins. The purity level of these new coins will be found to be within the bounds of 95% and 98%. If you are looking at ingots and bars, their purity levels are even higher at 99.99%.

Some people ask why investors are buying into this commodity if it isn't a precious metal. The simple answer is all around them. Wherever your eyes rest, somewhere copper will have been utilized. This is probably one of the most used elements, and as an added bonus it is extremely durable.

Just consider your own house, and the amount of piping and cabling that has been used. Also take note of the number of appliances that you have, they have all used this metal to certain extent. Due to the non corrosive aspect of this metal, industry also utilizes vast amounts. Even such things as gold jewelry will also contain a small level to add strength. All of these factors have given this element a financial worth.

With regards to durability and lack of corrosion, consider the Statue of Liberty. There she stands in New York harbor, she has been there for more than a century. Just think about the weather conditions she has faced in that time. Now when she was first made over 170,000 pounds of metal were utilized, and to this day the levels of erosion have been minute. No wonder some refer to this element as 'man's eternal metal'.

In recent years the financial returns gained by those investing in this metal have sky rocketed. The initial outlay has been less than for the so called precious metals, but the performance has often been greater. So for many it really has been a wise move to join the ever increasing numbers of people investing in this commodity.

Many of these investors are gambling on the needs of the developing world. Some feel that existing mining concerns will produce enough raw material to sustain the world's needs. Yet others point to the future needs of the emerging nations, such as China and India, and feel that there will be a constant market.

Consequently these investors feel the time is still with them, and continue to buy copper bullion as an investment. As a commodity it is nothing new, as people have been buying and selling this element for generations. It should be pointed out to anyone considering entering into this as a possible investment, always use a recognized broker.




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