Base Metals Commodity

Base metals are common metals such as copper, zinc, aluminum, nickel, and... Base metals are common metals such as copper, zinc, aluminum, nickel, and tin. Sometimes called non-ferrous metals, these commodities are abundant in nature, unlike precious metals. Investors usually purchase base metals based mutual funds and ETFs because they believe the price of a given commodity will increase. Base metal prices tend to be impacted by the rate of global economic growth. More economic activity typically results in more use of these metals, while a recession can result in a glut. However, base metal markets and prices are also influenced by other factors, such as investor demand, short-term speculation, hoarding and dis-hoarding, and fluctuations in currency values. Base metal investments are only appropriate for aggressive investors willing to take on considerable risk. It’s worth noting that many index ETFs and mutual funds already have exposure to these metals. As a result, investors should give some thought to whether they want to increase their weighting before taking on more direct positions in these metals and the associated stocks. Last Updated: 04/25/2024 View more View less

Base metals are common metals such as copper, zinc, aluminum, nickel, and tin. Sometimes called non-ferrous metals, these commodities are abundant in nature, unlike precious metals. Investors usually purchase base metals based mutual... Base metals are common metals such as copper, zinc, aluminum, nickel, and tin. Sometimes called non-ferrous metals, these commodities are abundant in nature, unlike precious metals. Investors usually purchase base metals based mutual funds and ETFs because they believe the price of a given commodity will increase. Base metal prices tend to be impacted by the rate of global economic growth. More economic activity typically results in more use of these metals, while a recession can result in a glut. However, base metal markets and prices are also influenced by other factors, such as investor demand, short-term speculation, hoarding and dis-hoarding, and fluctuations in currency values. Base metal investments are only appropriate for aggressive investors willing to take on considerable risk. It’s worth noting that many index ETFs and mutual funds already have exposure to these metals. As a result, investors should give some thought to whether they want to increase their weighting before taking on more direct positions in these metals and the associated stocks. Last Updated: 04/25/2024 View more View less