Precious metals

23 04 2008

No, I am not referring to Silver, Gold or  even Platinum. I am talking about copper! Yes copper is the new rare metal. The price of copper has risen fourfold in the last 4 years! What is that to you in real terms? If you have  a bank account that attracts 10% interest on savings, you would double your money every 7 years. It will take another 7 years to quadruple your initial savings. So, if you had used that money to (legally) buy copper 4 years ago, you can now sell it for 4 times what you paid for it. What difference is that to silver and gold you say? Well, firstly, copper is cheap compared to silver and gold, at the end of 2003 it was selling for about USD2000 per tonne. That’s about RM 8000. Last year, copper was selling  for about  USD 7000 /tonne. And today it’s trading on the owrld market for about USD8600/tonne. For an outlay of just under RM8000 you would get back RM28000 even after factoring in the weaker US dollar! That’s a cool 20K profit.

Now Gold is not too shabby. It traded at USD400/ounce in January 2004 and is now USD800/ounce on the world markets. If you had the same RM8000 in 2004 and bought gold. You’ve only doubled your investment. And at USD 400/ounce, it would take a lot of dough to get yourself even a pound (16 ounces) of the stuff.

Gold, like silver and platinum are rare metals, that is why it is so expensive. It is estimated that in our entire history, man has only mined a total of 25 cubic metres of gold. Copper on the other hand is much more common. Electrical wires contain 75% copper and they are everywhere, in street lights, transmission lines, transformers and almost any gadget that uses electricity. With it’s price at an all time high, this is why copper thieves have crop up not just in our country but in the most advanced countries of the world.

Did you know that copper is also biostatic? That means bacteria does not grow on its surface. This is why is it used in air condition tubing, hot water pipes, cooking utensils and even doorknobs.




Leave a Reply

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: