Copper is once again in discussion all over the world. The increasing demand for electric vehicles, solar-wind energy projects, large data centers and infrastructure construction has made this metal special. This is the reason why many investors have started calling it the next silver. He believes that just like the rise in silver prices was seen a few years ago, similarly the prices of copper may also strengthen in the coming times. Here is some basic information related to copper. Let us now tell you about how to invest in it.
Copper is not just an ordinary metal. It is extensively used in electrical wires, motors, transformers, power cables, electronics goods and electric vehicles. It also has an important role in solar panel and semiconductor industry. Copper consumption is also increasing rapidly due to artificial intelligence and increasing network of data centers. When the demand for a metal increases and the supply does not increase as fast, there is a possibility of a rise in prices.
Experts say that the demand for copper in India may increase at a double digit rate in the next few years. The quality of ore coming out of mines is also decreasing in many places, due to which production is becoming expensive. Its effect is also visible on the supply. Due to all these reasons, there is a feeling in the market that copper may have a good long-term opportunity.
Way to invest in copper
- Now the question is how should common investors invest money in this? There are many ways to invest in copper. The first method is futures trading. In India, its trading is mainly done on Multi Commodity Exchange of India i.e. MCX. Here a deal is made to buy or sell copper at a fixed price for a future date. This method is for those who understand the market and can take the risk, as it also involves leverage.
- Another way is to invest in shares of copper related companies. The price of copper has a direct impact on the profits of companies that extract or process copper. If copper prices increase then a rise can be seen in the shares of these companies also. This is considered a relatively easy option for long-term investors.
- The third option is to invest in ETFs of foreign markets. There is currently no pure copper ETF available in India, but some funds abroad offer the opportunity to invest in the copper industry. Indian investors can take stake in these through foreign platforms as per the prescribed rules. However, it requires understanding of currency risk and international markets.
Apart from this, some traders also use complex instruments like Contract for Difference i.e. CFD or options, but new investors should not jump into these without understanding.
demand for copper
If we talk about prices, copper has definitely come down from its record level in the international market, yet strong returns have been seen in it in the last one year. Even in India, its movement on MCX is fluctuating. Analysts believe that if the pace of green energy and electric vehicle sectors continues like this, the demand for copper may remain strong in future also. There is an opportunity to earn money in copper, but it is not wise to invest blindly. With market movements comes risk. With the right information, balanced investment and long-term thinking, stepping into this next silver can be beneficial.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
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