People always invest in gold as a refuge during difficult economic times. Silver is also very popular because, like gold, its value is better than gold. Other assets during inflation. However, gold and silver are not the only profit factors that you can trade in metals. If you are interested in trading commodities, especially natural resource commodities, you can put your money on base metals. Although unlike gold and silver, base metals - copper, nickel, zinc, lead, and iron - used for various commercial and industrial purposes, they may bring you substantial profits.

What is base metal?

The concept of 'base metal' may sound derogatory, especially when combined with the term 'precious metal'. Compared to precious and rare metals such as gold, silver, and platinum, base metals are more common in the depths of the Earth. They are also easier to mine than precious metals, so their manufacturing costs are lower. However, compared to gold, silver, and platinum, base metals are not worthless even if they suffer losses. They are invaluable to the global economy due to their practicality and universality.

In fact, base metals are used for various purposes in many commercial and industrial fields. Think of copper pipes, aluminum cans, and the steel needed to manufacture vehicles. Basic metals are almost ubiquitous and easy to extract, and their costs are much lower than similar products of precious metals and rare earths. As of the writing of this article, the spot trading price of gold is $1817.25 per ounce; The price of platinum is $959.21 per ounce. Copper can reach as high as $402.35. The price of base metals responds to changes in demand for products using metals.

Copper has additional functions that other base metals lack. Investors pay attention to copper prices to understand the health of the global economy, as it is widely used in construction. Its price is used as an important global indicator of economic growth. Analysts say that if demand for copper increases and prices soar, the global economy may be improving. The decrease in copper prices may serve as a reminder to investors that the economy is slowing down, or at least encourage people to believe that economic activity is slowing down in the following important areas.

How to invest in base metals?

If you are considering investing in base metals, you can participate in marketing base metals in various ways. You can invest in the following individual companies: specializing in the production of basic metals. Statista provides a main list of global base metal production companies, where you can decide where to put your money. For example, you can invest in Glencore Xstrata to produce copper, nickel, zinc, tin, lead, and cobalt; Or Freeport - McMoran, dealing with Cooper; Or BHP Billiton may participate in the production of copper and nickel. Rio Tinto produces copper, which is also a good choice, as Norilsk Nickel specializes in nickel and copper, steel companies such as American Steel and aluminum companies such as Alcoa. In addition to investing in individual companies, you can try trading futures and option contracts for individual metals. Switch to CME Globex, a trading system that provides global connectivity to the widest range of futures and options pools, covering all asset classes, and trading copper futures (HG) and options (HX).

Another variant is to shift to various global base metal exchange traded funds (EFTs). You can trade in the Jingshun DB Base Metals Fund, including futures contracts for zinc, copper, and aluminum. Alternatively, you can contact SPDR S&P Metals&Mining ETF, which consists of companies involved in the mining and metal industries. There are also iShares American Basic Materials ETFs, including companies that produce basic materials.

How to invest in copper?

Copper is widely popular for its wide applications and is better known than other base metals. Copper is used for wiring, pipelines, electronic products, and coinage. This base metal is known as an indicator of global economic health. Due to recent global economic instability, copper prices have experienced highs and lows, affected by trade tensions between China and the United States, supply shortages, and the war between Russia and Ukraine. As the epidemic begins to subside, copper prices have jumped to a historic high of $10700 per ton. Due to potential supply shortages of copper, Goldman Sachs predicts that its prices will soar to $9750 by 2023, with an average price climbing to $12000 by 2024. There is reason to expect copper to break historical records next year.

You can invest in copper just like investing in other base metals. Choose any copper futures, copper exchange traded funds (ETFs), or copper stocks. Many professional miners handle copper: Codelco, Glencore, PHP Group, Freeport – McMoran, Mexico Group, Tec Resources, Southern Copper, Rio Tinto, and Antofagasta There is also a rich arsenal of small companies engaged in copper production, including explosion-proof resources, Barksdale resources, NGEx minerals, Los Andes copper, and Amak resources

Base metals may be cheaper than precious similar products and are not considered a safe haven during difficult economic times. But they are indispensable in many industries and often have unique properties that other metals do not have. Nickel is the main component of stainless steel, while zinc is included in galvanized steel to prevent corrosion. Copper is used for wiring and coinage. These unique qualities, combined with relatively low prices, recommend base metals as investment assets.