Earlier this year, when gold and silver started seeing shakier price performances, some turned to copper as a metal with strong fundamentals backing its rising prices.
Now, ongoing geopolitical tensions are causing the red metal to feel a bit of the pain, too. The Iran war has caused the price of copper to lose some of its luster this month, due to ongoing worries that the war could buoy persistent inflation and slow down growth.
However, it’s likely far too early to tell. After all, the strategic factors backing the metal’s price rise in the first place are still there.
Copper offers a menagerie of crucial, practical uses. Those could continue to help the metal’s price stay on the high end. For instance, electrical infrastructure commonly uses the red metal. That sector is seeing rapidly rising demand due to skyrocketing growth in AI adoption. The defense sector also frequently employs copper. AI data centers and other forms of AI infrastructure use it, as well.
These practical applications may help copper keep shining in the months to come. Even if geopolitical tensions lead to short-term selloffs, the fundamentals backing the metal’s momentum remain sound.
Small Copper Miners Offer Long-Term Opportunities
There are plenty of ways to build out copper exposure; one way to do so is to invest in a copper miner ETF. This includes the Sprott Junior Copper Miners ETF (COPJ), which could offer particularly compelling exposure.
COPJ’s investment focus drills down on small copper miners. This approach can help tap into long-term growth opportunities and potential revenue, especially given the resilient factors backing copper’s current price conditions.
Taking on a fund like this can help advisors and investors plan ahead for the metal’s momentum, in lieu of focusing on near-term price shifts. As long as copper has a key structural role in the global economy, a fund like COPJ could act as a long-term provider of growth.
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Disclosures
For more news, information, and analysis, visit the Gold/Silver/Critical Minerals Content Hub.
An investor should consider the investment objectives, risks, charges, and expenses carefully before investing. To obtain a Prospectus, which contains this and other information, contact your financial professional or call 888.622.1813. Read the Prospectus carefully before investing, which can also be found by clicking one of the links below.
Past performance is no guarantee of future results. One cannot invest directly in an index.
Funds that emphasize investments in small/mid-cap companies will generally experience greater price volatility. Diversification does not eliminate the risk of investment losses. ETFs are considered to have continuous liquidity because they allow an individual to trade throughout the day. A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses, affect the Fund’s performance.
Sprott Asset Management USA, Inc. is the Investment Adviser to the ETFs. ALPS Distributors, Inc. is the Distributor for the ETFs and is a registered broker-dealer and FINRA Member. ALPS Distributors, Inc. is not affiliated with Sprott Asset Management USA, Inc. or VettaFi.
Exchange Traded Funds (ETFs): SETM, LITP, URNM, URN, COPP, COPJ, NIKL, SGDM, SGDJ, SLVR, GBUG, METL
Physical Bullion Funds: PHYS, PSLV, CEF, and SPPP.
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