How copper is priced
Copper trades globally on exchanges such as the London Metal Exchange, quoted in US dollars per tonne. Work that back to a single kilogram and the raw metal is worth a few tens of New Zealand dollars. That is the number people have in mind when they look at a copper bar and ask why it costs more than its melt value.
Why copper bars cost more than melt value
Minting a bar costs roughly the same whether the metal inside is copper or silver. Casting, stamping, finishing and small batch handling are fixed costs per piece, and at copper's low spot value those costs make up most of the price of the finished bar. This is why copper premiums look high in percentage terms compared with gold or silver. It is a feature of the economics of minting, not a markup peculiar to any one dealer.
Comparing copper products fairly
The useful comparison is price per kilogram across products and across dealers. Larger bars usually work out cheaper per kilogram than small ones because the fixed minting costs are spread over more metal. Also remember that copper is not fine metal under New Zealand GST rules, so GST applies. Our GST on bullion guide explains how the rules treat each metal.
Why people buy copper
Copper is the most affordable way to hold a meaningful weight of physical metal. Buyers use it as an entry point to learn how bullion works, collect it for the designs, and give it as gifts. A kilogram of metal in the hand for the price of a takeaway meal each week is a very different experience from a certificate or an app balance.
Copper at Williams Bullion
Copper is a specialty of ours and our copper collection is one of the largest in New Zealand, from single bars to volume orders. You can check where spot sits on our live prices page before you compare products.
This article is general information only and is not financial advice.
Want to see and feel the weight for yourself? Visit the Williams Bullion showroom at 124 Peterborough Street, Christchurch, or call +64 3 667 2327.