How to Invest in Copper (2024)

New to copper investing? This is the Investing News Network’s hub for educational content on copper.

Often termed Dr. Copper, the red metal has long been held up as a key indicator of global economic health and is one of the most highly followed base metals.

Copper’s high ductility and electrical conductivity make it the third most consumed industrial metal in the world, behind iron ore and aluminum, as per the US Geological Survey.

Given its attributes, copper is often used for electrical purposes such as power transmission and generation. Like its base metal sibling nickel, it has a major role in the electric vehicle (EV) revolution, with experts expecting consumption of copper to jump five-fold by 2030 due to demand from the green energy market.

Read on to get an idea of the supply and demand dynamics that move the copper price, as well as how to invest in the red metal. You can also click through the links below and to the left for more details.

Copper investing: Supply and demand

Similar to any other commodity, copper supply can be prone to disruptions in various capacities: environmental events, worker strikes, economic fluctuations and so on. As such, it’s important to keep an eye on what’s happening in the world’s major copper-producing countries, such as Chile, Peru and China.

The past few years have brought several disruptions to copper ore production, including a strike at Codelco’s Chuquicamata mine in 2019, known as one of the world’s biggest copper mines; of course, COVID-19 pandemic lockdowns have also impacted copper mines across the globe.

These and other issues have contributed to big picture concerns for copper output, although some experts expect copper prices to remain high despite the potential for a modest supply surplus.

Copper had a breakout year in 2021, reaching an all-time high above US$10,700 per tonne on the back of higher demand expectations. Heading into 2022 and beyond, analysts expect that growth in the use of EVs and renewable energy will translate into higher copper demand in China and globally.

Trade war issues between China and the US have also impacted on copper as of late. With China being the world’s largest copper consumer, new Chinese import restrictions on copper scrap could put a substantial dent in the market. According to Reuters, China has been working to limit scrap imports in an effort to reduce the shipment of foreign solid waste into the country; however, scrap accounted for 10 percent of China’s copper use last year.

As with any metal, supply shortages can lead to jumps in price, assuming demand remains intact or rises. The balancing act of supply and demand is fickle, and investors who are curious about copper may want to get involved sooner rather than later.

Copper investing: How to invest

There are a variety of ways one can get involved in the copper market. As with other commodities, exchange-traded funds (ETFs), futures and mining stocks are common methods of capitalizing on copper.

In the case of a copper ETF, investors are able to access the copper market indirectly by looking at funds focused on copper or copper-mining companies.

Copper futures contracts give investors a chance to take part in the market in a lower-risk fashion; according to InvestingAnswers, “(Futures) allow buyers and sellers to ‘lock in’ the price at which they buy or sell an asset in the future.” This creates a bit of a safety net effect for those in the market.

Lastly, there are copper stocks, which can be risky, but are one of the most direct routes to the market. Investors can buy shares of firms involved in copper mining, development and exploration, and ride the ebb and flow of both these companies’ performance and the copper price.

For reference, some of the largest copper-mining companies are Freeport-McMoRan (NYSE:FCX), Glencore (LSE:GLEN,OTC Pink:GLCNF), BHP (ASX:BHP,NYSE:BHP,LSE:BLT) and Rio Tinto (LSE:RIO,NYSE:RIO,ASX:RIO). These big companies could be a safe place to start.

If you’re interested in the copper market and copper investing, click through the links listed below and to the left to learn more about this exciting base metal.

This is an updated version of an article first published by the Investing News Network in 2020.

Don’t forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

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FAQs

How to Invest in Copper? ›

As with other commodities, exchange-traded funds (ETFs), futures and mining stocks are common methods of capitalizing on copper. In the case of a copper ETF, investors are able to access the copper market indirectly by looking at funds focused on copper or copper-mining companies.

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Is copper a good investment? ›

Copper is an essential metal that is used in a wide range of industries, from construction to electronics. As such, the demand for copper is expected to remain high in the long term. Investing in copper can be a way to gain exposure to this growing demand.

Is there an ETF for copper? ›

ETF Summary

The Global X Copper Miners ETF (COPX) provides investors access to a broad range of copper mining companies.

What is the future of investing in copper? ›

Global demand for copper is expected to double by 2035¹ driven not only by traditional sources of demand such as construction and infrastructure, but also by the adoption of new technologies that support a transition to a low-carbon economy, including electric vehicles, solar panels, and wind turbines.

Is copper going to $15000? ›

The red metal is currently trading around $8,300 a ton, down approximately 26% from its all-time high of nearly $11,300, set in October 2021. According to Layton, copper could top out at $15,000 a ton by 2025, a jump that would “make oil's 2008 bull run look like child's play.”

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How much is a 10 lb copper bar worth? ›

Element 10 Pound Copper Bar

Quantity	Check/Wire/eCheck 4% discount. When you pay with a check, money order, or bank wire, you will receive a 4% discount.	Card
1+	$149.99	$155.99
5+	$144.99	$150.79

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Is copper a better investment than silver? ›

While copper prices are lower than gold and silver (making it a low-risk investment), the value of copper will most likely increase as it continues to grow in demand over time.

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Should I invest in copper 2023? ›

“Our outlook for 2023 and 2024 is: when you get a dip in copper prices, it's something to have in your portfolio. There is just not enough supply. And when we look at everything that's happening in the environmental space, the renewables, everything, copper is a key component.

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How much is a stock of copper? ›

Key Data

Label	Value
52 Week High	4.2675
52 Week Low	3.2835
Bid	3.718
Ask	3.72

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How can I invest in copper in USA? ›

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What is the largest copper ETF? ›

Three top copper ETFs

Copper ETF	Ticker Symbol	Assets Under Management
Global X Copper Miners ETF	(NYSEMKT:COPX)	$1.77 billion
United States Copper Index ETF	(NYSEMKT:CPER)	$150.5 million
iPath Series B Bloomberg Copper Subindex Total Return ETN	(NYSEMKT:JJC)	$66.9 million

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What is the top ETF for copper? ›

5 Top Performing Copper ETFs

Ticker	Company	±%
ICOP	iShares Copper and Metals Mining ETF	-0.89%
COPX	Global X Copper Miners ETF	-1.08%
PICK	iShares MSCI Global Select Metals & Mining Producers Fund	-0.91%
CPER	United States Copper Index Fund ETV	-0.82%

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Jul 3, 2023

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Is copper going to skyrocket? ›

While many analysts are tipping increased demand and pricing for copper in 2023, the actual size of the price growth remains uncertain. American multinational investment bank and financial services company Goldman Sachs has forecast that copper prices will reach record high prices of US$11,000/t.

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What will copper be worth in 2025? ›

Where Are Prices Heading? Goldman Sachs forecasts that the benchmark London Metal Exchange price will almost double to an annual average of $15,000 a ton in 2025. On Wednesday, copper settled at $7,690 a ton on the LME.

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What will copper be worth in 2030? ›

According to Report Linker's latest copper report, the global copper market reported a value of US$170.6 billion in 2022, which is projected to reach a size of US$298.4 billion in 2030, a 7.2% compound annual growth rate.

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Is copper expected to go up in value? ›

For its part, JPMorgan (NYSE:JPM) is forecasting that copper prices will rise to US$9,100 by the end of 2023, with the potential for US$10,000 in 2024. This is an updated version of an article first published by the Investing News Network in 2021.

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Is copper a good buy 2023? ›

Fitch Ratings. According to a recent Fitch Ratings report, global primary copper demand is predicted to rise by approximately 2% in 2023, like 2022, while copper mine production is expected to rise by around 4%.

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Is copper a good investment during inflation? ›

Because of how copper is tied to the world economy, it provides an excellent hedge against inflation. This happens for two reasons. Firstly, copper prices tend to rise before general consumer prices rise, and so the commodity can be bought as a proactive inflation hedge.

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