Looking to invest in copper ? Not sure how and where to get started ? Then we can help. New Zealand investment has been helping kiwis invest in copper for the past 10 years. Check out our beginner guide to investing in copper below
Copper Investing 101
Copper investment is easy if you know how and where to invest. In order to successfully invest in copper you need to get the latest information from the best people. That’s where New Zealand investment comes into play.
Our team has put together a complete beginners guide to investing in copper. All the information is sourced from some of top copper investors in New Zealand and around the world. Learn from the best and get started with investing in copper.
Just like other commodities- gold, silver, food items, oil and gas, copper can also be used for investment purposes and comes in both physical and digital form.
Investing in physical copper is possible through buying copper bars, copper coins, or copper rounds. Like anything copper can be bought and stored physically at your home or in a vault throughout New Zealand.
Types Of Copper Investment
Lets have a look at the two different types of copper investment available for beginners in New Zealand and see which one suites the best. Make sure to do your research and way up the pros and cons of buying copper for investment
Physical Copper Investment
Even though copper is not as much expensive as gold, it is bought by individual investors in physical forms such as copper bars, or copper coins. Many websites and stores provide copper bars and coins weight starting from 5 oz.
Copper is also used by various businesses as raw materials and bought for investment. Many companies are directly involved in the copper mining process or operations related to copper mining.
Bronze which is an alloy, made up of copper and tin, is also bought in the form of coins.
Digital Copper Investment
The rise in investment and trading community in the 21st century in New Zealand and across the globe has given rise to various online platforms listing Copper.
Copper can be traded and you may even invest copper in form of derivative – future or options contracts. There are many copper stocks companies that you can find on the NZX.
Copper Prices In 2022
The price of Copper was around NZ $11,670 per ton in February 2021 while in January 2022 it went up to NZ $14,500 per ton and gave approximately 24 % return during this period.
Whats Affecting Copper Market
Russian Invasion :
Russian invasion of Ukraine, the Copper price has jumped significantly. The sanctions put on Russia by many organizations and nations have impacted the global supply chain of copper as Russia is the source of around 3.5% of copper in the world.
After the COVID19 economic slowdown, the global economy is recovering and investments in the fields of transportation, public infrastructure & housing is increasing, which will surely benefit the copper industry. Since the resources of copper mining are limited, experts are bullish on copper and suggest it for future investment.
Demand For Copper :
If we analyze the longer-term scenario, then copper appears to be bullish because of the steep demand for E-vehicles, where copper plays an essential role in batteries and motors.
Is Copper A Good Investment For You
Since, copper is a natural metal, its supply is very limited. Already the copper industry is not able to meet the world’s day to day needs, resulting in high prices.
According to the International Copper Alliance, which is a global non-profit organization advocating for copper use, Copper’s use in Electric Vehicles is much greater than that of conventional combustion vehicles. The NGO reports that the traditional car engine known as the Internal combustion engine, requires only 23kg of copper, while the hybrid electric vehicle (HEV) consumes about 40 kg of copper. An electric battery bus can consume even more than 300 kgs of copper.
Copper The New Oil
These figures are truly surprising and can justify the fact that copper is being regarded as the new oil. It is expected that the rise in electric vehicles production will demand more copper and copper having limited sources will lead to a supply crisis shortly.
Individuals traders invest in copper for making small profits while organizations invest & trade for hedging risk, as many companies use copper as their raw material. Hence, Copper investment in 2022 can be a good investment for the future.
Can Anyone Invest In copper
Simple answer is yes, anyone can invest in it as long as they know the basics of investing in copper. Thousands of kiwi’s have been investing in copper for the past decade and thousands more are getting started with copper investment every year. 2022 has seen a large jump in the number of people looking to invest in digital copper. This is mainly due to new apps and websites offering easy access to trading in copper EFTs.
Why You should Invest In Copper
Main reason you should consider investing in copper is its price. Currently you can start investing in copper with as little as $25 and currently copper is readily available through local copper merchants in New Zealand. Physical and digital copper can be bought and sold easily within New Zealand.
The demand for copper is growing daily and looks like its not going to stop anytime soon so it is a good time to buy some copper bullions or coins and hold onto it for few years.
What You Need For Copper Investment
With any investment you will need few stuff before you can start investing in copper. As with any other investment you will need money to begin with and basic knowledge of how and where to buy and sell copper in New Zealand. We have sourced out some of the most important things you will need when it comes to investing in copper.
- Money, you don’t need much as you can start investing with as little as $25.
- Place to buy Copper ( Copper Merchants in New Zealand )
- Place to store copper ( Vaults or safe )
- Place to sell copper to get your returns / profits
Digital Copper Investment Needs
When investing in digital copper like buying shares in the mining business or copper ETFs you will have different requirements. With digital investment you will need to find a safe and secure app or website that will allow you to trade in Copper. Things you need when it comes to trading copper.
- Safe and secure computer / phone
- Safe and Secure App
- Trusted Website
Risk With Copper Investment
With any investment there is risk and copper investment is no difference. Our experts have listed some of the main risks associated with investing in copper.
Copper Investment Risks
Copper is usually traded and invested in the form of derivatives like futures and options. But both future and options are risky instruments, where the movement of prices can be significant even in less period. Also, the high dependence of this commodity on physical materials can cause problems during a situation like war (Russia-Ukraine conflict) or pandemic (the Covid19)
Many of the New Zealand based brokers don’t work exclusively in the commodities segment and often investors need to invest in copper through global brokers. One must beware of any such brokers and invest only in verified brokers.
Commodities like copper and other metal are often considered seasonal and may not always perform well completely depending upon the demand and supply. So, there should be diversification in your investment portfolio and you should consider other commodities like – gold, silver, oil, and other asset class like stocks, cryptocurrency, bank fixed deposits, property syndicates, etc.
Making a differentiation between the success of an industry and the success of a particular company is essential. Often the naïve investors think that if the copper industry is expanding then a company might also be performing well, which may not be true in every case. Hence, investors need to make an informed decision and then invest.
Who Can Help With Copper Investment
Investing in copper in stocks, funds or commodities is similar to investing in other assets like a mutual fund or investing in cryptocurrencies. To invest you need a good investment broker
Copper Investment Brokers
Choose any broker registered with New Zealand’s Financial Markets Authority. You may also find the list of recommended brokers on NZX’s website. You can decide to choose a broker based on many parameters including- service fees, list of instruments, availability of copper/ commodities, customer’s review, etc.
How to Start Investing In Copper
Investing in copper is easy if you follow few simple rules and tips. When using a broker it becomes very simple, we have listed simple processes of getting started with the investment processes.
Once, you choose and visit the broker’s website, then fill in your details and make your account. Many platforms also require you to do the KYC, which takes only 2 minutes in 2022.
After creating your account, you can either link your account with your bank account or load money into your wallet with your credit card.
Now with one click, you can proceed to buy any particular fund, stock or invest using a future and options contract.
Derivatives - Future & Options Contracts
You can invest in copper through derivatives. Derivatives are becoming a popular form of financial instrument that is highly traded by individuals & companies to hedge risk.
Main Types :
The 2 main types of derivatives that can be used to invest in copper are- futures & options contracts.
The advantage of a futures & options contract is that you can not only buy but sell the commodity despite not having it in the first place.
If you are speculating that copper price will be decreasing in New Zealand, then you can sell the futures contract or buy the Put Options (which means to bet on the fact that copper price will decrease in the coming time).
The advantage of buying copper as derivatives is that unlike buying the physical form you are investing in a virtual form. In this way, you don’t need to take the burden of keeping getting delivery of copper coins or bars. Your investment can be worth 1000s of dollars & can be purchased with a single click and sold whenever you want.
Copper Investment Companies In NZ
There are many companies that offer physical and digital copper investment options in New Zealand. Our investment experts have sourced out some of the best copper investment companies in NZ. Check them out and see who can give you the best returns for your investment.
Copper Investment Companies
To buy copper in New Zealand, you can go to various brokers that operate in the derivative segment or offer funds. It is important to note that many of the local companies don’t operate exclusively in this sector. According to the NZX’s website, the following are the listed companies/ wealth management firms dealing with commodity derivative trading:-
ADM Investor Services International Limited (ADMISI)- https://www.admisi.com/
JBWere – https://www.jbwere.co.nz/
BNP Paribas in Asia Pacific – https://apac.bnpparibas/en/
Copper Stocks and ETFs
Copper stocks is the simplest way to invest in companies operating in the field of copper or other metal mining. 3 major copper stocks to buy or companies that are involved in copper mining in New Zealand are:-
- Freeport-McMoRan (NYSE: FCX)
- BHP Billiton (NYSE: BHP)
- Southern Copper (NYSE: SCCO).
The rising demand for Copper in various sectors can be a golden opportunity for us to invest in Copper in 2022. But, at the same time, we need to be aware of the risks associated with copper investment and then make an informed decision.