1 pound of copper is worth about 5 euros/dollars.
Copper is a highly demanded and not enough supply.
You don’t have to look very hard to find someone predicting a resource shortage, whether its’ peak oil or more recent concerns of a lithium shortage. The newest element of concern is copper, with predictions of severe supply shortfalls ahead. So what does the future really hold for the red metal?
It is estimated that only 12% of the world’s copper has been mined. Chile, by far the world’s largest producer with 27% of global output, as reserves to last at least another century at current rates. Copper also boasts the highest recycling rate of any base metal. The problem isn’t running out of copper, it’s producing it fast enough.
www.geologyforinvestors.com
If copper were to go to 2-3 dollars per pound, Iran would only experience 100% inflation and it provides a floor on the value of the Iranian currency.
1 troy ounce coin = basic unit of new Iranian rial = ~40 euro/us cents.
lowest banknote is one basic unit and bank notes of larger value.
1/2 of a troy ounce copper coin = 20 euro cents.
1/10 of a troy ounce copper coin = about 4 euro cents.
Banknotes redeemable in copper on demand.
Extremely large withdrawals that are similar to wanting to cause a bankrun and harm the IRI, you would have a dump truck of steel coins, legal tender and equal to the value of the money demanded, to pay the demanded metal in steel currency.
I was suggesting this when copper was 3 dollars a pound. It is around 5.
Copper really can't go lower than 1 federal reserve fiat dollar, so you have a floor of around 1-3 dollars in extreme cases.
The minimum cost of producing a pound of copper can vary greatly depending on several factors such as the location of the mine, the method of extraction, and the current market conditions.
According to a report by the United States Geological Survey (USGS), the average cost of producing a pound of copper in 2020 was around $2.50. However, this cost can range from as low as $1.50 to as high as $5.00 or more per pound, depending on the specific operation.
Here are some approximate costs associated with producing a pound of copper:
- Underground mining: $2.50 - $4.00 per pound
- Open-pit mining: $1.50 - $3.00 per pound
- Recycling: $0.50 - $1.50 per pound
It's worth noting that these costs are estimates and can vary depending on various factors such as:
- Energy costs: The cost of energy can significantly impact the production cost of copper.
- Labor costs: Labor costs can vary depending on the location and the specific operation.
- Equipment and maintenance costs: The cost of equipment and maintenance can also impact the production cost of copper.
- Environmental and regulatory costs: The cost of complying with environmental and regulatory requirements can also add to the production cost of copper.
Sources:
- United States Geological Survey (USGS). (2020). Copper.
- International Copper Study Group. (2020). Copper Production Costs.
- Bloomberg. (2022). Copper Price.
) for some reason we still have multiple rates for USD$ !
