Is Copper the New Gold?
Lots of things are new these days—40 is the new 30, orange is the new black, and copper may just be the world’s new gold. There’s no denying that gold is certainly the more desirable material, but despite its long history as true money, gold might eventually be less valuable than copper. It’s hard to say exactly when, or even if, copper will upstage gold, but there are some interesting facts that suggest the rise of copper is imminent. This is good news if you have excess copper and need to turn a quick buck, since metal recycling plants in Tucson already pay top dollar for copper scrap metal. Here are two signs that point to a new copper age.
Growing Chinese Copper Market
Last year, China officially overtook the United States as the world’s largest economy. The latest figures from the International Monetary Fund (IMF) show the Chinese economy to be in excess of $17.6 trillion. China is also one of the leading copper markets in the world, and is expected to increase copper holdings as part of its ongoing infrastructure build-out. In fact, China’s State Reserves Bureau has increased the nation’s year-over-year copper imports by more than 60 percent. Some analysts speculate that copper may eventually be used to back China’s currency, which means copper would replace gold as the world’s most valuable metal.
Increased Global Demand
In addition to phenomenal growth copper has experienced in China, India, and other emerging market economies, demand for copper in the manufacturing and construction industries has also increased and is expected to grow even more as electric vehicles become more prevalent in the world. The average new car contains approximately 60 pounds of copper. Electric cars require up to double the amount of copper for extra cabling and windings in the motors. The growing demand for electric cars will in turn grow demand for copper, and the rule of supply and demand tells us that this will cause the price of copper to go up as a result.
You don’t have to be an economist or scrap metal market analyst to realize the value of copper. Just bring your copper to Tucson Iron and Metal and see how much your scrap metal is really worth. Our metal recycling facility offers the most competitive scrap metal prices in Arizona. If you have any questions, please call us at (520) 884-1554.