By Cedric P Loiselle
Copper exchange traded funds give individuals entry in the copper markets in a risk-free and comparatively inexpensive manner. Copper has lately done very well since the past few years where it has seen growth to the tune of almost 30% per annum. This upward trend is not expected to deviate and will probably continue its journey in the years to come, bearing in mind the all-time rising demands from countries like India, China and Brazil which require this metal for their developmental purposes.. It is predicted that the demand for this metal will grow by almost 7% in the future considering the huge number of uses of copper.
Copper exchange traded funds have performed well in the markets since the beginning and though amounts of profits in a short time are not very huge, it continues to give stable returns. The attributes of this commodity also make it a preferred investment option. Copper is one metal which has a broad range of uses. It is put to use right from the big industries for varied reasons to the day-to-day household items such as for plumbing, electrical items, conductors etc. Apart from this, the physical aspects and the number of ways in which it can be used make it completely resourceful and more attractive.
The global copper requirements per annum go up to almost 18 million tonnes. In the current year, it is likely that the world will face a short fall in supply by around 400,000 tonnes of copper. This will have a contrasting effect on the prices, which will in turn have a favourable effect on the funds. This will make investing in these funds undeniably safer since if there is no downfall in the demand, the prices will see an upward trend and the funds will continue to prosper.
Copper ETFs definitely hold an advantage over others in terms of risk. These are significantly lower risk and reasonably priced investment options amongst all other options that are available. Taking into account the various positive aspects of Copper, it is safe to conclude that Copper is a sound investment option. So considering the overall trends and the anticipated future demands it is surely going to be good for investors to reap the benefits of the rising trends. Though the returns might not be substantial as compared to certain other more risky investments, the Copper ETFs provide investors with safe investment options and those that give fairly consistent returns over a period of time.
Apart from this the copper exchange traded funds are also highly liquid in nature. This is because the investment can be sold at any point of time. Then again there are other factors such as the markets fluctuations. These do not have a huge impact on the values of the investments. Copper exchange traded funds are far more stable and do not fluctuate according to the market turbulence. The price of copper also does not fluctuate like that of gold. All in all, these hold considerable advantage as compared to the other available options.
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Article Source: Ezinearticles