Invest in Copper

Invest in Copper

Copper is one of several important metals that will be needed in the transition to a green and sustainable world. The electrification of our society is a strong driving force for its increased demand, which also makes the metal interesting from an investment perspective. This text will go through why Copper can be good to expose yourself to in an investment portfolio, as well as how to go about investing.

Why invest in Copper?

Copper (Cu in the periodic table), is the metal that conducts electricity second best (after silver). Because copper is cheaper than silver, the metal is mainly used when larger volumes are required.

Demand for copper is expected to increase in the coming years, a major reason for this is the electrification of our society. Because copper is used in cables, electric motors, batteries, etc. Increased demand for these products will affect the price of metal.

Investing in the raw materials required to create a green future can be a good strategy for diversifying your portfolio towards raw materials, as well as if you do not know which companies will build the best products from the raw material. By owning the raw material directly, or the companies that extract the raw material, you can get a cleaner exposure to a future price increase in the raw material.

How to invest in copper?

There are several ways to invest in lithium: ​

  • Shares: Buying shares in the companies that create extracts the raw material.

  • Funds: Invest in a fund that provides direct exposure to the commodity, or the companies that extract the commodity. There are different types of funds. When you invest in a fund, you pay a fee for an expert (fund manager) to select the underlying assets. There are two types of funds:

    • Daily traded fund: Often actively managed, which means that an expert reviews the holdings and rebalances at regular intervals.

    • Exchange Traded Fund: A basket of securities that follows an index and is traded as a stock.

An example of a fund that provides exposure to companies that extract copper is AuAg Precious Green .