Copper can be traded through a variety of trading instruments where traders may or may not own the actual product. The main ways to trade copper through a broker or an exchange are through bullion, contracts for difference (CFDs), futures, options, ETFs, and shares.
The trading symbol for copper varies, based on which trading instrument and exchange the product is traded on. For example, the copper futures symbol on NASDAQ is HG:CMX. The symbol on CME Globex for copper futures is HG. On the London Metal Exchange, the contract code for copper futures is CA.
Copper prices are mostly driven by commercial industry demand and the rate of supply by copper-producing countries. Useful indicators for copper prices include company stocks that play a key role in copper consumption and copper production. Other useful indicators are indices of commodities that are required to mine copper, like energy commodities (oil).
Copper has many useful qualities, one of them being that it is an excellent conductor of electricity and heat. Thus, copper is often used as a conductor in the form of wires and pipes. Copper has also been used to print coins, and it is an essential antioxidant used by the human body.
In this article, we discuss the 10 best copper stocks to buy now. If you want to skip the detailed analysis of the copper market and its recent trends, go directly to the 5 Best Copper Stocks to Buy Now.
Copper is one of the main drivers in the global economy due to its vast applications in several industries. Data Bridge Market Research analysis shows that the global copper market was valued at $304.79 billion in 2021 and is expected to reach $453.756 billion by 2029 at a CAGR of 5.10%. According to the executive co-chair of Ivanhoe Mines Ltd., Robert Friedland, copper is one of the essential commodities to combat climate change. He said:
\"We're not going to have clean air or make a meaningful impact on the climate, nor are we going to be able to act on the so-called inflation reduction bill [in the U.S.], without a massive increase in demand for the copper metal.\"
According to S&P Global, decarbonization will require massive amounts of copper, which will increase its demand in the future. However, companies have avoided exploring and developing new copper projects in the last decade as they take decades to achieve commercial production. S&P Global predicts that there will be a shortage of 1.6 million tonnes by 2035. The more pessimistic prediction is that the deficit could reach 9.9 million tonnes. Daniel Yergin, vice chair of S&P Global, said:
Earlier in April, the CEO of Rio Tinto Group (NYSE:RIO) spoke to a panel about the upcoming \"massive deficit\" of copper supplies in the next three years. Jeff Currie, global head of commodities research at Goldman Sachs, agreed with the statement and added that the expected deficit drives the firm's $15000 per ton price target. Currie further explained that the deficit has already been flagged by numerous people. However, the market has not priced it in yet because the commodities market doesn't price in expectations.
During these bearish times for copper, some of the best copper stocks still remain stable due to their fundamentals. Those stocks include some notable names, such as Newmont Corporation (NYSE:NEM), Teck Resources Limited (NYSE:TECK), and Vale S.A. (NYSE:VALE).
Glencore plc (OTC:GLNCY) is an Anglo-Swiss commodity trading and mining company. The company is involved in refining, storage, transportation, and marketing of metals and minerals, and energy products in the Americas, Europe, Asia, Africa, and Oceania. In the mining segment, the company produces copper, cobalt, nickel, zinc, lead, chrome ore, ferrochrome, vanadium, alumina, aluminum, tin, and iron ore.
On September 28, Copper Mountain Mining Corporation (OTC:CPPMF) announced mill expansion plans for its flagship Copper Mountain mining project in British Columbia. The project will produce 65,000 tons of copper a day, up from the previous 45,000 tons per day. The initial cost for the expansion is estimated to be $237 million. The mine will produce 4.1 billion pounds of copper equivalent over 32 years of mine life. It includes an after-tax net present value at an 8% discount rate of $1.24 billion.
Western Copper and Gold Corporation (NYSE:WRN) is one of the best copper stocks because of its flagship Casino project. According to a recent feasibility study, the estimated production cost has increased. However, due to high gold credits, the all-in sustaining costs for copper will remain negative. The Casino project inferred resources including reserves containing 21.1 million troy oz gold, 10.7 billion lb copper, and 169.5 million lb molybdenum. In addition, the project also has 20 million toz of silver.
Hudbay Minerals Inc. (NYSE:HBM) is a diversified Canadian mining company that produces copper concentrates containing copper, gold, and silver; silver/gold doré and molybdenum concentrates, and zinc metals. The company operates in North and South America.
Copper is a soft, reddish-gold metal that is used to make currency in addition to having industrial applications such as piping, electrical wiring, car radiators, air conditioners, home heating systems, and steam boilers. These qualities make copper a versatile commodity and a financial asset that can be used as an investment.
Investments in copper can be either direct or indirect and can be made through copper bars, copper coins, futures, mutual funds, stocks, exchange-traded funds (ETFs), or options on eligible stocks and ETFs.
To invest in copper directly, investors can hold it in physical form, which can be done through the purchase of copper bullion bars or copper coins. Although not as direct as the purchase of coins or bullion, investors can also gain exposure to the value of copper through the purchase of futures.
Warning: Although copper is a widely used metal, it is not necessarily a suitable investment for all investors' portfolios. For example, the price of copper can be influenced by multiple factors, including the health of global economies, and supply and demand for industrial use. Thus, the price of copper is not predictable, especially in the short term. The type of investors that typically gain exposure to copper through futures and options are those who are willing to take on the added risk of short-term price fluctuation. Some investors use copper and other commodities for diversification and hedging strategies.
Tip: Indirect investments in copper may have wildly varying degrees of exposure to the metal and different degrees of leverage and risk from other assets. Investors should be sure to understand the nature of the assets in any copper investment and their expected relationship to the metal itself.
There are multiple resources for researching copper investments but investors should be wary of depending on research sourced from parties who are trying to sell direct or indirect copper investments.
Tip: Investors are encouraged to research sector funds that invest in copper, copper mining stocks, or any investments in the natural resources category. Use Seeking Alpha's ETF screener to search for commodities funds in the subclass \"precious metals\".
Investors who wish to add copper to their portfolio have a wide range of options, including physical copper bullion and coins, copper mining stocks, copper ETFs, and certain commodity-based mutual funds. Investors should carefully assess the benefits and risks of various copper investments before buying.
Gershow recycles metal products and then manufactures them into finished products in customer specified forms including baled, sheared, and shredded for sale domestically and for export overseas to steel mills, copper and aluminum foundries, paper mills and other metal manufacturing facilities. It owns a fleet of more than 250 rail cars and maintains a rail yard adjacent to its shredding facility, allowing it to ship products using just about any form of transportation to any destination.
Alpha Copper Corp., an exploration stage company, engages in the acquisition, exploration, and development of mineral properties in British Columbia. The company explores for copper, gold, copper, and molybdenum properties. It holds an option to acquire a 60% interest in the Indata property comprising 16 mineral claims totaling 3,189 hectares located in the northwest of the community of Fort St. James, British Columbia; and a 100% interest in the Okeover copper-molybdenum project covering an area of 4,613 hectares located near the coastal community of Powell River, British Columbia. The company was formerly known as Prophecy Potash Corp. and changed its name to Alpha Copper Corp. in December 2021. Alpha Copper Corp. was incorporated in 2019 and is headquartered in Vancouver, Canada.
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Copper mugs are the barware of choice for serving the Moscow Mule cocktail. Have you ever wondered why copper mugs are so special Moscow mules are served in copper mugs to enhance the presentation, chill the drink to a frosty temperature, and some believe it even affects the flavors. Keep reading to learn more about the history of copper mugs and why they go hand-in-hand with Moscow Mules.
In the 1940s, three entrepreneurs from Los Angeles devised a plan to create the Moscow Mule. Jack Morgan, the owner of the Cock 'n' Bull bar, was sitting on a cellar full of unsold ginger beer. John Martin had recently purchased Smirnoff vodka but was having trouble with sales. The final piece of the puzzle came from Sophie Berezinski, a Russian immigrant selling copper mugs. All three came together to create a drink that helped each of them sell their products. Wes Price, the bartender at the Cock 'n' Bull, is attributed with creating the final recipe. 59ce067264