Copper is red hot again.
In fact, copper could rocket about 75% higher by 2025, as noted by CNBC. All thanks to mining supply disruptions and higher demand, especially as the world goes green. “Rising demand driven by the green energy transition and a likely decline in the U.S. dollar in the second half of 2024 will push copper prices higher, added BMI, a Fitch Solutions research unit.”
In addition, with more than 60 countries now backing plans to triple global renewable energy capacity by 2030, we’ll need all the copper we can get our hands on. “Other analysts see a bullish run for copper due to mining disruptions, with Goldman Sachs expecting a deficit of over half a million tons in 2024,” added CNBC.
While you can always buy copper stocks, like BHP Group, Freeport-McMoRan, Rio Tinto, and Southern Copper, you can also diversify – at less cost – with funds. Look at the U.S. Copper Index Fund (CPER), for example. With an expense ratio of 0.97%, it trades copper futures.
Or, look at the Global X Copper Miners ETF (COPX). With an expense ratio of 0.65%, the COPX ETF tracks the Solactive Global Copper Miners Total Return Index. In addition, the ETF has holdings in Ivanhoe Mines, Southern Copper, Freeport-McMoRan, BHP Group, and Teck Resources to name a few. Better, you can diversify with the ETF’s 38 holdings at less than $37 a share.
