Copper is considered to be an important industrial metal and has a wide variety of applications when it comes to construction that includes tubing and wiring. Copper is also an essential part when it comes to the creation of integrated circuits, circuit boards as well as the chips currently utilized in computers. This is why copper is also often utilized as a barometer when it comes to economic activity. Just take the copper ETF, for example, which is traded just like stocks when it really is a share of an investment accounts that have copper futures agreements.
I’m a big fan of investing in copper mining stocks, but a copper ETF is fine as well.
Tips for Buying a Copper ETF
1. Utilize the unpolluted play. A genuine copper ETF would be UBS’ iPath Copper Fund operates under the ticker, JJC. This fund was actually designed to copy Dow Jones – AIG Copper Total Return Sub-Index by way of high quality copper futures contracts and JJC does its trades on COMEX or New York Commodities Exchange.
2. If you can, you should also consider buying exposed copper ETF’s. Besides copper ETF, two other exchange trade funds are available that could afford you the display to the price of copper.
3. Always monitor inventories. This applies to any commodity, actually. Basically, whenever there is a rise in supply that’s comparative to demand, it would often result in lower prices. You can get weekly copper inventories through Shanghai Futures Exchange.
4. Do watch the Chinese market. Basically, they are world’s largest consumer of copper and the different factors that might influence the country’s economy can also have an effect on copper prices. With that said, weakness if China can also directly manifest itself.
So there you have it, just some of the things that one needs to know about copper ETF as well as some useful tips that should help you make a more informed choice when it comes to purchasing it.
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