Appeared in Jewelry Market Amid Soaring Prices
Banned from Sale Due to Market Regulations
Following record highs in gold and silver prices, copper has also reached an all-time high, leading to the appearance-and subsequent ban-of copper bars, or bullion, in China's largest jewelry market.
According to local media outlets such as Hongseong News and Hong Kong’s Sing Tao Daily on January 22, merchants at the Shuibei Jewelry Market in Shenzhen, southern China, recently began selling copper bars with a purity of 999.9, aiming to capitalize on the surge in copper prices. Shuibei Jewelry Market is considered the largest precious metals and jewelry distribution hub in China.
The price of a 1kg "investment copper bar," produced in the same form as the commonly known gold bar, ranged from 180 yuan (about 38,000 won) to 280 yuan (about 59,000 won). A representative from a copper bar manufacturing factory told Hongseong News, "So far, about 200kg have been sold."
As news of copper bar sales spread, the market management immediately ordered a halt to sales and instructed all vendors to remove copper bars from their shelves.
The reason cited was that market regulations restrict primary sales items to precious metals such as gold and silver. As a result, there are currently no copper bars on display within the market.
However, merchants told local media that while copper bars are no longer displayed outside, they still hold inventory and can accept custom orders. The media also warned of the risks of speculative losses associated with purchasing copper bars.
Experts point out that the unit price of copper bars is significantly higher than the actual spot price of copper, due to processing and packaging costs. Additionally, when reselling, buyers may only receive 50 to 60 percent of the original purchase price, making copper bars much harder to liquidate than gold bars, which is considered a major risk factor.
An official at a state-owned bank in Zhejiang Province warned, "Most ordinary people do not understand the principles behind the price fluctuations of metals like copper," adding, "Market volatility is extremely high, so people should avoid speculative investments driven by trends."
Meanwhile, since the beginning of this year, international copper prices have surpassed $13,000 per ton (about 19 million won), setting new record highs day after day. Analysts say that the surge in demand for data centers and power infrastructure due to the proliferation of artificial intelligence (AI) has highlighted copper as a key mineral, contributing to the price increase. There is also speculation that prices could rise even further.
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