Current Copper Price | Chart | Historical and Expected Trends

In the chart below, you can track current and historical copper prices on the exchange.

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Price change

Historical prices

Future price outlook

According to analysts, the price of copper had been undervalued for many years because there was a surplus of copper on global markets. The price is therefore being pushed higher by the depletion of this commodity’s reserves.

In the world’s currently largest economy, China, industry there was growing year on year at a rate of tens of per cent. Hopes of better times ahead are driving up demand for almost all goods, including consumer electronics and other products in whose manufacture copper is used. Other commodities also recorded year-on-year growth in the tens of per cent, such as oil, timber, coffee and, among metals, platinum, silver and nickel.

Looking ahead, the price of copper depends, like most investment instruments, on the state of the global economy. The monetary policy of most world powers was expansionary during the past year, so it can be assumed that the price of commodities in general will rather continue to rise, as the figures from the past year suggest.

What is copper

Copper is a noble metal, an element with a reddish colour. It has very good thermal and electrical conductivity and excellent ductility and malleability. The world’s largest producers of copper are Chile and Peru, and it is also mined in the USA. Potential deposits are also located in Canada.

History of copper

Humanity has known copper since prehistoric times. It was one of the first metals processed by humans. Later, copper began to be used in alloys, for example bronze is an alloy of copper and tin. Brass was also later produced by alloying copper and zinc.

What copper is used for

Thanks to its high electrical conductivity, copper is now one of the main materials used in electricity distribution, and it is used to make wires, circuits and components for electronics, for example computers or mobile phones. Its resistance to corrosion makes it ideal for construction, where copper is used to make sheets, gutters and roofing. Because of its thermal conductivity, copper is also used in radiators.

As for copper alloys, bronze was historically used for jewellery or weapons, while today it is used more in industry. Compared with pure copper, bronze is harder and more durable. Brass is used to create an anti-corrosion layer for products made from other metals, for example iron in food tins.

Ways to invest in copper

You can invest in copper in several ways. For those interested in holding a physical investment, we can recommend copper bars or coins. The disadvantage, however, is the higher cost of storage as well as the dealer premium on this physical commodity. As with other metals, investing in the virtual commodity is always simpler and more advantageous, and you can trade options, CFDs or futures contracts.

Last but not least, you can invest in copper through ETFs (exchange traded funds). Let us mention two examples. United States Copper Index Fund (CPER) is a commodity fund that trades futures on the COMEX exchange. By buying its shares, you invest indirectly, but very simply and efficiently. Shares in this fund have been rising continuously since March 2020.

The second fund is Barclays iPath Copper Subindex (JJC). It always focuses on one type of futures contract. According to a fixed schedule, JJC enters contracts two months before expiry in February, April and June, and three months before expiry in August and November. Its price performance is almost identical to that of the second fund, CPER.

How to buy copper in practice – without needing a physical purchase?

It is also possible to invest in copper through ETFs and shares of mining companies. Below, we present ETFs and several shares in this segment. All the ETFs and shares mentioned can be bought through eToro and XTB.

Global X Copper Miners ETF (ticker COPX) is one of the most popular ETFs focused on copper. This fund concentrates on companies involved in copper mining and processing.

• Underlying asset: Companies primarily mining copper.
• Returns: Derived from the share prices of mining companies.
• Fees: The annual management fee is 0.65%. Investors do not pay this fee directly, as it is already reflected in the current share price.
• Liquidity: High.
• Fund manager: Global X Management.
• Year established: 2010.
• Assets under management: More than $1 billion.
• Main companies in the portfolio: Freeport-McMoRan, Southern Copper, First Quantum Minerals.

Freeport-McMoRan Inc. (ticker FCX) is one of the world’s largest copper producers and is also a major producer of gold and molybdenum.

• Main activities: Mining copper, gold and the element molybdenum, mainly in North and South America, Indonesia and Africa.
• Headquarters: Phoenix, Arizona, USA.
• Year established: 1912.
• Market capitalisation: More than $50 billion, which places it among mid-cap companies.
• Dividends: The average annual dividend yield is 0.67%. Dividends are paid to investors quarterly.

Southern Copper Corporation (ticker SCCO) is one of the largest copper miners in the world and ranks among the leading producers not only of copper, but also of other metals such as molybdenum, zinc and silver.

• Main activities: Mining and processing copper, with extensive mining operations in Mexico and Peru.
• Company headquarters: Phoenix, Arizona, USA.
• Year established: 1952.
• Market capitalisation: More than $40 billion, making it a mid-cap company.
• Dividends: The average annual dividend yield is around 2.2%. Dividends are paid to investors quarterly.

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