How Many Copper Stocks Do You Have? (Part 1)

Copper stocks are your best bet if you are concerned about the heirloom value of your portfolio

As always, there is a catch! Though technologists cannot conceive of a world without copper at any foreseeable point in the future, demand for the metal is not isolated from general economic sentiment. Copper demand swings with changes in macro-economic trends. The early 1980s saw steep reductions in copper consumption as a result of blinding recession. The message is clear: do not speculate in copper stocks, or buy them to make a quick buck! Rather, the optimal approach would be to look for bargains during recessionary spells, and to wait for upturns in national economies. It is worth noting that the versatility of copper makes for global demand, regardless of the country on which one focuses for trading in stocks.

A handful of about 10 nations accounts for half of all copper production. Emerging economies such as those of Peru and Papua New Guinea focus on increasing total domestic production, regardless of price trends; more powerful and diversified ones, such as those of United States and Canada, prefer to hold back when prices fall, and work on productivity improvements instead. Investors can choose between alternate copper stocks based on how management teams respond to price, demand, and technology trends. The best companies combine cutting edge management practices with a broad base of mining rights in distant parts of the globe. They are also active in prospecting for new reserves and on expanding the total supply base. Differences in strategies could see consolidation within some segments of the industry in the near future.

How Many Copper Stocks Do You Have? (Part 2)