4 Things Powering Base Metals ETFs | ETF Trends

Move over, gold. You’ve had your day in the sun. Right now, industrial demand from both developing and developed markets is powering a rally in base metal exchange traded funds (ETFs).

Last year was the Year of All Things Gold as the safe haven metal supplied investors with a shelter for the market turmoil. But rampant fear in the marketplace has abated, and a bigger risk appetite is the order of the day. That means markets are moving, countries are growing and they’re hunting down the materials they need to get it going:

  • Industrial demand for base metals is expected to take off as emerging economies continue to build up. It’s anticipated that the biggest beneficiaries of this will be aluminum, copper, nickel, lead and zinc, reports AAP on The Sydney Morning Herald.
  • The U.S. dollar has been weakening, lending some support to these metal prices. As the dollar weakens, commodities priced in dollars will become cheaper for overseas buyers.

For more stories about metals, visit our metals and mining category.

  • PowerShares DB Base Metals (NYSEArca: DBB)

  • Market Vectors Steel (NYSEArca: SLX)

  • iPath DJ AIG Nickel ETN (NYSEArca: JJN)

  • iPath DJ AIG Copper ETN (NYSEArca: JJD)

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.