‘Peak copper’, not peak oil, the real commodity concern
When it comes to precious commodities, it could be copper, not gold or oil, that stands out in the future, according to Dr Les Coleman.
“Copper is interesting. It has been mined for the better part of ten thousand years, so we know copper very, very well, but the price keeps on going up.”
“Generally if you know something very well you should be able to produce a lot of it quite cheaply and we don’t seem to be able to do that, so it may be (a commodity) to look out for.”
According to Dr Coleman we may be seeing the approach of ‘peak copper.’
“One of the interesting things about commodities is that the only ones we’ve ever run out of are the so-called renewables, such as clean air, fish etc. But we haven’t yet got to the stage where any non-renewable commodities become scarce, and that will be interesting.”
“Commodities have proven to be, over a long period of time, a very accurate leading indicator of
the economy on the whole. It’s quite good that commodity prices haven’t fallen very sharply – they are still at quite high levels by historical standards – and that’s good for economic growth.”