On the buy side, some experts believe that copper still has some downside potential, but think the market will bring copper prices back over $3 a pound. [5 Things to Look for in the Gold ETF.]
On the hold side, experts say that as copper gets cheaper, demand will pick up, producing somewhat of a floor on copper prices. They think the market will tend sideways until 2011, when a supply deficit is expected to kick in.
Any regular reader of this website knows what we’re going to say: watch the trends. Copper exchange traded notes (ETNs) and ETFs are below their trend lines right now, and while a strengthening economy and global demand could continue to push prices for the metal higher, a wait-and-see approach may be in the offing. [How to Follow Trends.]
For more stories on copper, visit our copper category.
- First Trust ISE Global Copper (NASDAQ: CU)
- iPath DJ-UBS AIG Copper ETN (NYSEArca: JJC)
Sumin Kim contributed to this article.