Copper is being used in many industrial practices. As it is mainly used as a basic material for the production industry it is very depended upon the global economy. Copper supply and demand are of course the drivers of the price of this copper ETF.
On the supply-side the copper mines are the dominating factor but we must not forget that copper is a highly recycled material so this has a large impact too.
Demand is coming from industry. As with many basic materials prices are very cyclic. When copper prices go down for some time, supply will follow too. Inefficient mines will close and copper from recycling sources will not be put on the market.
Eventually copper supply will be lower than demand and then the cycle turns itself around. When demand is rising so will supply and at the end we will be back at where we started.
This cycle effect will repeat itself over and over again making way for investors to garner nice profits during these waves. A return of 100% in only a few years is a realistic possibility for this copper ETF but of course prices move with the same cycles downwards.
ETFS Copper ETF
I use the ETFS Copper ETF to invest in copper.
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ETFS Copper info:
ETF provider: ETF Securities
Exchange: Euronext Parijs
This ETFS Copper has quotations on different exchanges and is known under several ticker symbols. As long as the ISIN number is identical you are dealing with the same ETF.