COPPER PRICES RISE SHARPLY

Looking at copper which is widely used in electronics as well as in construction it definitely as basic material. In the last 12 months the price of copper has risen from $2.80 to $4.49 per pound.

Motherboards typically have 4-6 layers of copper to handle the interconnections. Video cards also tend to use 4 layer boards. Many peripheral cards are also using 4 layers due to the use of VLSI and surface mounted logic.

With higher copper prices the cost of manufacturing will see some cost increases. The housing market will see wiring cost more as well. Copper is so widely used as a small constituent that overall the effect is not generally noticed.

In related news the price of lumber has also skyrocketed. Other materials are also elevated. Demand has been driven mostly by growing construction due to low interest rates.

Corn is also running higher. Alcohol for automotive uses has reduced the glut in corn effectively from the Reagan era. Wheat is also up suggesting that bread prices might rise a bit. Coffee is still near decade lows which means no fear of higher prices to make coffee by the gallon.

Instant coffee has bounced around and its currently about $1 more than it was a year ago. Energy costs have not spiked suggesting simply corporate greed.

COVID-19 is a convenient scapegoat which hopefully will be history sooner rather than later.