Copper stocks: is now a good time to invest? | Forex Trading TV ...

As copper prices hit a record four month low, many investors have been wondering if now is the time to buy up resources of this useful metal that is essential to many industries. However, those looking to invest in the metals market should do so cautiously, not least because of the downward trend that copper has suffered in the first half of 2012.

?

The low copper prices that have emerged recently were not expected at the beginning of this year; it is only within the last month or so that the extent to which the price of copper stocks has fallen has been realised. Prices were expected to increase due to a combination of global political and economic events in recent times; unfortunately, this hasn?t been the case.

?

Expectations for this metal revolved around, in the main, the assumption of the continued growth of the world?s biggest consumer of copper, China. With a rapidly-expanding infrastructure, China?s need for copper has continued to keep prices afloat; combined with labour disputes interrupting production in Indonesia and Peru, copper stocks were expected to outperform other metals on the stock exchange.

?

However, prices have fallen, and now may seem like an excellent time to invest in this essential metal. China?s growth rate, while it may have slowed, is likely to pick up again, and as a contender for a new world superpower, its need for copper is only likely to increase. With foresight, investing in copper now could pay off when this renewed growth begins again.

?

But copper prices fell not only because of China?s halted growth, but because of continuing concerns of the stability of Europe?s economy, in particular Greek banks. With many European countries under ?austerity measures? and banks being forced under tighter regulation, external investors and stockholders are unsure as to how this will affect the rapid and easy flow of commodities ? like copper ? through the continent. Similarly, the US has much to do to catch up to its former strength as an economic powerhouse and assuage stockbroker fears.

?

It is unlikely that the European economies will be recovering from the widespread and endemic economic problem they are facing any time soon, so while the potential for copper investors to profit is there, thanks to the assured eventual growth of China, economic problems in the continent and the USA are likely to significantly slow down the recuperation of returns from copper stocks.

?

?

Tags: Business, Copper, Economic growth, Investing, London Metal Exchange

49ers news saint louis university leprechaun night at the museum pope shenouda bolton muamba sxsw