Copper prices hit $10,000 a ton for the first time since 2011, and as they continue to rocket upwards, ETF investors looking to get industrial metals exposure can check out the Global X Copper Miners ETF (COPX).
”The copper price has gone stratospheric and probably has further to go, which is a boon for miners who are currently making at least two dollars for every one they spend getting metal out of the ground,” said Robert Edwards, an analyst at CRU Group, in a Mining.com article.
COPX seeks to provide investment results that correspond generally to the price and yield performance of the Solactive Global Copper Miners Total Return Index, which is designed to measure broad-based equity market performance of global companies involved in the copper mining industry. The fund is up over 30% so far this year.
Stimulus Tailwinds
As the global economy continues to heal, copper prices should continue to see strength as federal governments continue to pump stimulus dollars into their respective economies. Additionally, a push towards decarbonization can help “reduce the European Union’s carbon emissions by 25% — more than 1,100 million tonnes per year,” according to the European Copper Institute.
“The rally in copper, which has more than doubled in price from its covid-lows, has been fuelled by a widely-held belief that demand for the bellwether metal will receive a massive boost, not just from post-pandemic economic stimulus, but also from a worldwide push for decarbonization,” the Mining.com article said.
“The outlook for the US economy keeps getting better. Economic reopening coupled with massive stimulus, faster-than-expected vaccine rollouts, and supportive fundamentals all point to even higher prices,” said Wenyu Yao, senior commodities strategist at ING Bank.
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