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4 Stocks to Buy as Copper Prices Near Record Highs -Breaking

by Mike Robinson

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© Reuters. Four Stocks To Buy As Copper Prices Approach Record Highs

Prices are at record-setting highs due to a current imbalance in supply and demand. In the immediate term, there should be significant industry benefits due to rising demand in major end markets like automotive and construction. We believe it is a smart move to invest now in fundamentally sound copper stocks BHP, Rio Tinto (NYSE :), Glencore OTC :, and Southern Copper (NYSE :). For a detailed examination, please read on. A combination of high demand and shortages caused a rapid rise in copper prices. Copper prices are currently at near record highs. They hover just under $10,000 per tonne. However, inventories have dropped to 15,225 tonnes which is their lowest level since 1974.

This surge in copper prices has fostered heightened investor interest in this space, as is evident in the United States Copper Index Fund’s (CPER) 13% gains over the past month, versus SPDR S&P 500 ETF Trust’s (SPY) 3.9% returns.

The demand for copper will increase due to the increased demand from major markets such as construction and automotive. President Biden’s $1 trillion bipartisan infrastructure plan is also expected to boost the demand for copper. We believe it would be smart to buy shares in BHP Group (NYSE), Rio Tinto Group(RIO), Glencore plc [GLNCY] and Southern Copper Corporation (“SCCO”), which are all well-positioned for the hot copper market.

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