The commodity copper has long been a source of global investment and economic activity. With its widespread use in electrical wiring, appliances, and automobiles, copper has become a key factor in modern industrial development. In spite of its many uses, the basic supply and demand principles of economics still govern the price of copper on the open market. As such, historically, copper prices have been both volatile and unpredictable. In this article, we take a look at the history of copper prices and provide an updated forecast for the copper market in 2023.
First, we will take a look at how human effort has influenced the history of copper prices. The first records of copper use date back some 10,000 years, with evidence of its use in tools and weapons by primitive cultures. Across the many centuries that followed, humanity had a variety of uses for the metal which ranged from coins and weapons to vessels and ornaments. What was once an incredibly rare commodity thus began to become more and more accessible to the general public.
The demand for copper gradually increased across the globe as centuries of exploration and expansion brought new geographical areas into contact with the metal. Likewise, technological advances throughout history increased the demand for copper as new inventions and processes demanded its use in order to be constructed. For the individual investor, this meant that the price of copper had the potential to both rise and fall based on shifts in global economic conditions and the availability of alternative industrial materials.
As we move to the present day, the history of copper demand continues to be reflected in its price. Despite some significant price declines in 2009 and 2020 due to the global economic slowdown caused by the Covid-19 pandemic, the copper price has been fairly steady over the past few years. According to the U.S. Bureau of Labor Statistics, prices have increased from $2.51 per pound in January 2019, to $3.09 by March 2021. Copper demand continues to be driven by the continued industrialization of many developing nations, as well as the manufacture of new products, such as electric vehicles and renewable energy, which often require using copper or copper derivatives.
As such, looking forward to 2023, copper prices are projected to remain consistent with the current rate. While the base prices are expected to remain stable, some fluctuations could occur depending on global economic conditions and any potential natural disasters. Additionally, with a greater focus on renewable energy and other green energy sources, copper demand could increase, resulting in further price hikes.
In conclusion, the changing trends in the price of copper are reflective of the ever-shifting global economy. Despite some occasional price spikes, copper prices have largely fluctuated in stabilization over the past few years, which is expected to continue through 2023. With demand already on the rise, any new industrial or technological advancements could be especially beneficial for copper’s price. Ultimately, investors should remain informed of global economic and industry developments in order to take advantage of any potential gains in copper prices.
