What Drives Copper Demand: The Digital Infrastructure Boom
If you have been scrapping metal for a good amount of time, it is easy to recognize what drives copper demand. As a scrapper, you often see change coming ahead of time, long before most folks just going about life as usual. You see the old radiators coming out and the new industrial power cables going in. When the money coming in starts to slow down for the rest of the world, that is when everyone else starts to pay closer attention to their available funds. But you already know how to fill that gap.
Filling the money gap is why you scrap metal and do other small jobs here and there for customers. Although there is a lot of change going on in the world right now, the future of the metals recycling industry is looking even brighter. It may seem unrelated at first, but the bright future for the trade is partially because of the restructuring of our financial system.
The New “Picks and Shovels” Trade
Just like the automotive industry needs copper, and just like the home appliance industry needs copper, this new cryptocurrency industry needs copper to properly work as well. We have all heard stories about the gold rush back in the day. Some people knew then, but many realized it too late: the folks selling the picks and shovels made more than anyone else. They provided the infrastructure that made the search for gold possible.
They can call cryptocurrency whatever they want to on the news. To everyone in the scrap metal industry, cryptocurrency represents a bunch of new businesses that need copper, silver, gold, and other metals to operate. In our world, that translated directly to one thing: demand.
Progress Moves on Copper
As this new industry starts to take off, you will likely see some dramatic changes in metal buying prices. I am not suggesting that you hoard copper, but a stash of clean bare-bright copper in the corner of your shop may get you that fishing boat before too long. Progress does not stop, and it does not move without the red metal.
Data centers being built is the other side of the coin. There is a lot of debate about them that I am sure will eventually settle for the better. Progress continues though, and so will the increasing demand for copper and other metals. Change can happen suddenly or take its time, but in the secondary market, it is never late.
Research and Context
The list of cryptocurrencies provided below is for research purposes only. Do not look at these as financial investments. Instead, look at them as the names of the new industrial players. They are just some of the new businesses related to cryptocurrency, out of millions, that depend on the copper industry in order to operate.
The “Secret Sauce”: The Power Density Tip
Did you know? A cryptocurrency mining facility uses about ten times the amount of copper per square foot compared to a regular office building. Because of the massive electrical draw and the heat these machines generate, they cannot use standard wiring. They require high-strand copper and massive solid-copper grounding plates. If you ever get a chance to scrap a decommissioned server site, do not just look for the boards – look for the heavy-duty power distribution units (PDUs). The copper bus bars inside them are some of the purest Bare Bright you will ever find.
Integrity and the Trade
Always play it straight. If you are clearing out old technology gear, make sure you follow all local environmental laws regarding e-waste. Your reputation is your best asset in this business. If you stay informed on the why behind the demand, you will always stay ahead of the curve. Always check your local laws and stay legal.
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Ulysses’ Safety Reminder: When you are handling industrial electrical components from data centers, be careful. These parts are heavy and often have sharp edges. Never cut into a cable unless you have personally verified it is dead and disconnected. Stay sharp and stay safe out there.