COPX: Gold To Copper Ratio Signals Greater Trouble Ahead For Miners
Copper prices surged earlier in the year, but have since reversed gains as China's copper inventories slipped from extreme highs. Rising copper mining costs may offset post-2020 gains in copper, depending on economic and political risk in Latin America. China's efforts to bolster copper stockpiles may have pulled future demand forward, potentially leading to a sharp decline in imports later this year.
COPX: High Risk, Poor Reward
Global X Copper Miners ETF has underperformed the copper price and the majority of mining companies. Increased electrification is driving copper demand, but China's real estate decline hinders overall demand. Copper mining companies do not appear to be good earnings compounders, given the volatile cash flow nature.
COPX: Poised For Gains As Copper Demand Surges
Global X Copper Miners ETF (COPX) has delivered substantial returns for investors, rising 15.33% since my previous article last September. COPX is strategically positioned to benefit from the anticipated demand-supply imbalance for copper, driven by surging demand for electrification. With soaring demand and limited supply, copper prices are expected to rise, making COPX a solid choice for investors seeking exposure to copper.
Copper Miners ETF Is Only Sort of a Copper ETF. Is It a Buy?
Copper Miners ETF owns a collection of 40 copper-related miners. The exchange-traded fund has a fairly high 0.65% expense ratio, likely because of foreign holdings.
