Nowadays, everyone knows about gold. You hear about it on TV, read about it on the internet, and are told to buy it by your financial advisor. At this point, you probably have at least some exposure to gold in your portfolio.
And if you dont own any gold, theres a good chance you own silver. While silver may not be glorified in the financial press as often as gold its certainly a close second.
Heres the thing
Gold, silver, and other precious metals are important assets because they act as safe-haven investments. In other words, investors often use precious metals as a store of value when market conditions become volatile.
But in reality, gold and silver arent the most important metals to the global economy.
The most important metal isnt even a precious metal its an industrial metal.
Of course, Im talking about copper.
Now, copper isnt as illustrious an investment as gold or silver. Its not a status symbol and you dont normally use it in jewelry.
But make no mistake, copper is the metal in highest demand across the world.
In fact, copper is an important component to many of our most significant industries. You see, the industrial metal is used as a conductor of heat and electricity, a building material, and a key ingredient of various metal alloys.
As such, its used in building and home construction, electronics, wiring, piping, and automobiles, just to name a few.
So what does that mean to you?
Quite a bit actually.
Basically, because copper is so important in so many industries, it serves as a good indicator of economic growth. Often times, the price of copper will go up before the economy picks up steam. (Companies have to order copper before its actually used in products.)
Heres the good news
The price of copper is on the rise.
Copper futures were as low as $3.25 a pound in mid-December. But since that point, the price has done nothing but move higher. As of this writing, the price of copper is sitting at $3.80. Thats a 17% increase in just two months.
As I mentioned earlier, coppers climb bodes well for the worlds economic prospects. And, the industrial metals price could go even higher when the global economy really starts picking up steam.
Whats more, you dont have to trade copper futures to get exposure to the metal. You dont even have to head out to your local hardware store and buy coils of copper wire. Theres an easier way.
Penny stock miners.
Plenty of good, small mining companies produce copper. Just look for the ones that do more business in copper than other metals, and youll get decent exposure to the metal at a very reasonable price.
Yours in profit,