In the first ten months of 2016, copper prices plummeted as many traders experienced a global economic slowdown. However, during the last couple months of 2016 and the beginning of 2017, a wave of new buying has begun, making copper a hot investment.
What’s the cause? Simply put, the election of Donald J. Trump.
How President Trump is Helping Copper
Copper is a basic building block in infrastructure and Trump’s desire to pour trillions of dollars into infrastructure development is all over the media.
In his victory speech, Trump said,“We are going to fix our inner cities and rebuild our highways, bridges, tunnels, airports, schools, hospitals.”
Estimates vary on what a Trump administration might spend – from $1 trillion to $10 trillion – on infrastructure over a 10-year period.
Copper doesn’t rust or corrode, making it incredibly useful in plumbing, painting and other areas of building. However, copper is frequently overlooked when buying bullion. However, the demand for it is increasing as of lately and the supply is shrinking.
Recently, the price of copper rose for fourteen days in a row, which was actually the longest streak in 28 years.
Copper isn’t the only metal that has risen in price. Recently, other industrial metals like zinc, aluminium, lead and nickel have also seen a steady increase.
Pre-1982 pennies and copper bullion are legitimate investment options. Commodities experts disagree as to whether or not the popularity of copper will increase or decline over the rest of 2017, but only time will tell.