Don’t race to buy copper stocks at the moment.
Granted, if you’re still in the copper trades we’ve been pounding the table over, you’ve made some great money. In fact, after highlighting opportunity in Freeport-McMoRan (SYM: FCX), it raced from $33.35 to $47.21. BHP Group (SYM: BHP) raced from $45.25 to $51.51.
Even the Global X Copper Miners ETF (SYM: COPX) jumped from $36 to $45.48.
So, again, you made great money.
However, if you’re not already in, hold off.
For one, copper prices are now a bit overbought. Two, as noted by Barron’s, “Prices could also slide for another reason: U.S. buyers who bought excess inventory may exit the market as prices stay elevated, says Jefferies analyst Christopher LaFemina.”
Three, “If Trump backs off from a 50% tariff, prices could tumble back to where they were before the tariff announcement,” they added. “Investment banks such as Goldman Sachs think the threat is credible, as do many traders. Goldman analysts see a 60% chance of a 50% tariff priced into December 2025 contracts,” added Barron’s.
Wanting to be safe, let’s hold off on buying more copper stocks and ETFs at the moment.
Here are two copper ETFs we may consider on a dip.
ETF: Global X Copper Miners ETF (SYM: COPX)
This ETF tracks a basket of 40 copper mining companies, including:
Ivanhoe Mines
BHP Group
Freeport-McMoRan
Teck Resources
Capstone Copper
With an expense ratio of 0.65%, it offers a convenient way to gain exposure to copper’s upside potential without betting on a single stock. For investors who want to stay diversified while still capturing sector-wide trends, COPX may be the ideal fit.
ETF: United States Copper Index Fund (SYM: CPER)
With an expense ratio of 1.04%, the United States Copper Index Fund’s holdings consist of copper futures contracts on the COMEX exchange.
Since bottoming out at around $25.65, the CPER ETF is now a bit overbought at $34.80.
Again, we’d wait to buy until copper prices pull back from excessively lofty valuations.
At the same time, congratulations to those of you that jumped into copper when we first started pounding the table over it.
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