Fisher Investments on Materials > Sector Drivers > Case Study on Copper

Fisher Investments on Materials: Case Study on Copper

Fisher Investments puts these questions into practice by looking at just one material — copper. At nearly 30 percent, copper makes up the largest percentage of revenue of any metal within the mining industry — more than twice as much as the next material. (Fisher Investments further breaks down the mining industry by relevant metals in Chapter 4.) Copper is the third most abundantly produced metal in the world behind iron ore and aluminum. *

Long before it was discovered to be a useful electrical conductor, it played a role in improving standards of living. In fact, the harnessing of its properties was so important, we named a whole time period around it: The Bronze Age.

Is Copper Priced Globally or Regionally?
Because copper is a commodity with a relatively high value-to-weight ratio (outlined in Chapter 1 in Table 1.1), it can be economically shipped and is therefore priced globally on commodity exchanges around the world. Because it is priced globally, it must be evaluated on a global basis.

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* Daniel L. Edelstein, "2006 Minerals Yearbook: Copper," U.S. Department of Interior and U.S. Geological Survey (May 2008), http://minerals.usgs.gov/minerals/pubs/commodity/copper/ (accessed July 14, 2008)