Forget gold and oil, copper is in as a leading indicator of the global economy. This commodity had beaten gold and oil in terms of price too. Based on latest economic reports, we find copper prices have exploded nearly 200% while oil
and gold prices indicates an increase of 70%. And, market studies show this hike in copper prices is not over yet.
Though the market had experienced a fall in copper prices during mid of September 2011, the demand for the metal is now on a northward trend. The recent fall off in copper prices may be attributed to the slow pace of the metal in the Chinese market.
A new price hike is expected as the metal continues to be used in all sectors with added vigor – from construction of buildings, power generation and transmission to the manufacture of consumer electronics. Demand for copper has increased four fold than the rate at it is being produced.
It is being reported that the world’s top four listed global copper miners such as Freeport McMoRan, BHP Billiton, Xstrata and Rio Tinto have seen nearly 10% to 18% drop in their copper outputs. Codelco, the world’s leading copper miner, was forced to buy copper from an outside source earlier this year.
Based on predictions by market experts, copper prices are expected to scramble at least until 2015. That makes copper a safe and worthy investment option. More than all these facts, according to the International Copper Study Group’s latest estimation of copper market dynamics, the results should be encouraging copper prices in a big way.