A base metal is considered to be a common, or non-precious, metal. Some examples are copper, tin, lead, and zinc. These materials typically oxidize or corrode pretty easily, which means that they interact quickly with oxygen. This article will discuss properties of them, recent news and headlines related to them, and some common uses for them.
Basic Metals Properties
Base metal commodities typically adhere to the common metallic properties. They conduct electricity, have luster (or shine), are malleable, and usually have higher densities that nonmetallic elements. While these characteristics may be more true for some elements than others, they are generally considered unique to the metals of the periodic table.
Basic Metals In the News
Mining for these materials is going on all around the globe. Drilling has recently begun in southern Peru, where reports show large quantities of iron that can be obtained. A company drilling in Botswana has reported positive copper grades in that area. One company has reported advancements and successes in geophysical techniques at their nickel mines in Queensland. Two copper mines have recently been started in Zambia; they are attempting to save on employee salaries by hiring local Zambians to do the bulk of the mining.
In addition to mining news, there is an abundance of financial news relating to these common types of metal. Copper prices, although used worldwide in construction, have been steadily declining after a recent run-up; aluminum, on the other hand, has been rising in price. In fact, aluminum is almost at the highest value it’s been since August of 2008. One leader of the Global Financial Market stated that he thinks nickel and zinc prices will rise in the coming months, while copper, though on the low side of typical price range, will remain steady.
Basic Metals Uses
One of the most prominent uses of base metals today is monetary coins. Years ago precious metals like gold and silver were used to mint coins, and the value of those coins, to some degree, was based on the value of those materials. Today, all national currencies, including the dollar, euro, and yen, have transitioned to fiat money. The coins that make up fiat money are made of base metals; their value is set by the national standard. In other words, a quarter really is not worth that much according to the value of the material it is made of. Other common uses include the construction industry, packaging industry, and electrical industry, just to name a few.
Base metals are an important commodity in the global economy. It is important to be informed about what they are, what is happening with them in mining and financial news, and how they are used. By being an informed consumer, you can better understand the world around you.
Base Metals ETF
Investing in base metals can be done by investing in the PowerShares DB Base Metals Fund (DBB)
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May 2, 2011
Commodities