*** OPINION ***

Copper bars and coins carry very high premiums over the spot price — often from 30x or more in practice — and this is normal (though extreme) for physical copper bullion worldwide, including in New Zealand. It’s not a scam, but it’s also not an efficient way to get “copper exposure” like gold or silver stacking. Here’s our opinion on why the premiums are so high in New Zealand…

1. Spot price is for industrial bulk — not tiny retail pieces. The global spot price you see quoted is the price for tons of raw copper cathodes or wire delivered in huge industrial contracts on the London Metal Exchange or COMEX. (currently spot is around NZ$0.58 per troy ounce on New Zealand precious metal merchant websites) 

Retail bars/coins are tiny (1 oz, 5 oz, 10 oz, etc.). All the fixed costs of refining, minting, packaging, shipping, and dealer profit get spread across a very small amount of metal whose raw value is only a few dollars. That turns a modest absolute markup into a huge percentage premium.

2. Copper is genuinely expensive to turn into nice bullion. Unlike gold or silver, pure copper is soft, oxidises easily, and requires extra steps (special cleaning, anti-tarnish treatment, sometimes sandblasting or laser etching) to look good and stay that way. Minting or casting small bars/rounds is labour-intensive and done in low volumes because demand is tiny — it’s a niche hobby product, not a mainstream investment metal.

3. Result: a 1 oz copper round or a 5 oz bar can easily cost NZ$20+ while the actual copper inside is worth well under NZ$3–4. NZ-specific extras push the price even higher:

4. It’s a collector/hobby item, not a serious investment vehicle

Most people buying copper bullion do it for fun (“stacking” the shiny bars, historical themes, etc.). Because it’s not liquid like gold or silver, dealers charge healthy margins. The premiums are so high that the copper price would have to triple or quadruple just for you to break even on the metal value alone (before selling costs).

That’s why forums and stackers constantly say: “If you want actual copper weight, buy scrap copper wire, pipe offcuts, or even old NZ bronze coins/pennies by the kilo — you’ll pay far closer to melt.”

Bottom line for you in New Zealand: The high prices you’re seeing are real and structural — not because the merchants are ripping you off more than anyone else. Copper bullion in small minted form is simply one of the least efficient ways to own copper. If your goal is industrial/commodity exposure, you’re usually better off with futures/ETFs, or just buying actual scrap if you have storage space. The pretty bars and coins are mostly for enthusiasts who enjoy the physical stacking experience and accept the huge premium as the cost of entry.

*** OPINION ***