By Sebastien Wright
Found at, http://www.commodityonline.com/news/After-silver-Copper-is-next-in-line-to-be-gold-38429-3-1.html
What does the future hold for copper? Obviously nobody has a crystal ball but if we look at history first, we may get a glance into what the future might hold. In the 1990's, copper prices realized some significant increases due mostly to strong demand from telephone companies who were building copper infrastructure prior to the explosion of fibre optic construction.
This increase in infrastructure spend resulted in a glut of copper when the telecom industry fell upon hard times and also when fibre started to replace copper.
Fast forward to today and we are seeing an unprecedented demand for copper when we look at growing infrastructure demands from emerging economies such as China and India. As wealth is built in these economies, the demand for infrastructure increases exponentially and when we consider materials such as copper for use in electrical wiring and plumbing, one can predict that the demand for copper should continue to increase.
The challenge with using gold for example as a currency is that is almost too valuable. If you needed to make a small purchase and all you had was an ounce of gold, this would not be ideal. It would be like purchasing a chocolate bar with a $1000 bill! Metals such as copper on the other hand that have a traditionally lower value per ounce would make an ideal metal for smaller purchases.
In closing, base metals such as copper may not be nearly as sexy as gold or silver but in the long run, a commodity that has a real use in construction and one that is tied to the world economy should continue to be in demand. As with any investment, the key to success is education and knowing what you are doing. There are many books available as well as online information on how to invest in copper and other metals.