When considering investments and ways to preserve and grow wealth, the idea of copper bullion doesn’t immediately jump out.
Rarely do you see any advertisements for copper bullion…and rarely do you see a bullion dealer selling copper bars and coins. You may be thinking – why would I want to invest in something that’s relatively unknown?
Well, the moral of the story is when everybody known about something, it’s typically too late to really jump in and capitalize on a particular investment. You want to catch an investment when it’s first starting to catch on.
Copper is a metal with a wide-range of uses. In fact, modern life would come to a grinding halt without it – electrical wires and air conditioning systems for example contain this metal.
In years past, interest in copper has mainly been restricted to industrial uses and the exclusive domain of large-scale commodity investors purchasing thousands of pounds at a time. These kinds of investors don’t take physical possession. Instead, paper contracts are bought, sold and traded.
Events of recent years, coupled with dramatically higher interest in gold and silver, have driven a growing interest in copper coins and bars for small-time investors. While industrial demand will always drive copper prices, investor demand is having a bigger and bigger impact on copper each year.
Many of these investors are ultimately looking for a good barter tool in the event of an emergency. Like 90% junk silver quarters and dimes, copper coins can be incredibly useful in a barter type situation.
Three simple ways to invest in copper bullion include:
1. Copper Bars
2. Copper Coins
3. Pre-1982 Pennies
Copper bars, while not the most ideal barter tool, have become increasingly common in recent years. These bars are available in sizes ranging from 1-ounce to 10-pounds. Bars typically come with a lower premium since they require less processing than coins. Copper bars produced through a variety of private mints come adorned with unique symbols, designs and a serial number to verify the bar is pure.
Copper coins are perhaps the easiest, least expensive way to invest in metals. These private mint coins are typically available in 1/4-oz, 1/2-oz and 1-oz denominations. The low cost of these coins (…typically less than $2 for a 1-ounce coin) in comparison to gold and silver is one of the primary reasons that draw investors.
U.S. pennies from before 1982 are another good source for copper. Prior to the early 1980s, pennies in the U.S. contained 95% copper. What was worth one penny back then is worth nearly 3 today. While you may be able to find a few pre-’82 copper pennies (coins) in your change jar, you may need to look to a formal bullion dealer to buy any significant quantities.
Demand growth in copper expected to drive prices higher over the long-term.
Aside from its barter qualities, copper may be a good investment anyway in the years ahead. Demand is booming, especially in developing economies like China and India. Analysts in fact expect demand to double over the next 15-20 years.
Supply though isn’t expected to meet this demand.
Couple a devaluing currency (…in our case the U.S. Dollar) with supply shortages and you’ve got the recipe for tremendous growth in the metal’s price.
One drawback of copper of course is storage. Since the metal itself is more sensitive, you have to take special care to ensure your copper coins and barns are not tarnished.
However, if you’re looking for a resourceful way to prepare for emergencies, or simply capitalize on a growing investment, consider copper bullion coins and bars.
