Why a looming copper shortage has big consequences for the green economy
Jordan Smith, CNBC.com
This is a chart showing the price of copper, or well, the price of copper futures contracts at the New York Mercantile Exchange over the past two decades. Let's zoom in on 2021. All year copper prices have been surging, just a straight shot higher
Brian Sullivan, CNBC Business News
Copper up more than 30% this year.
David Faber, CNBC Business News
Well, demand for copper has dramatically increased.
Richard Ackerson, Freeport-McMoRan CEO
I'm talking about the fundamental story for copper is a long term, very positive one.
Jordan Smith, CNBC.com
Let's zoom back out. See that big dip but 2008 going into 2009.
Mary Poulton, University of Arizona
Last time, copper prices got high, just before the financial crisis in 2008, 2009, people were stealing copper wires out of homes that were being constructed. They were going into other buildings and ripping out plumbing pipes and copper wire.
Jordan Smith, CNBC.com
Copper has played a big role in the world economy for thousands of years. The Bronze Age? That happened because blacksmiths figured out how to forge copper with tin. Now copper is used in electrical and heating equipment because its chemical properties make it such a useful conductor. It's used in car motors, household pipes, washing machines, all sorts of things we use every day. That's not to mention all the different copper alloys that get mixed into other metals and items. Also, the metal is so easily recyclable that most of the copper on earth remains in the ground. In fact, only about 12% of all copper on Earth has been mined throughout human history, and nearly all of it remains in circulation. Some of the copper in circulation right now could have once been jewelry or armor in ancient Egypt.
So why are smart people like commodity analysts at Goldman Sachs warning about a copper shortage with dire consequences for the world economy?