Invest in Commodities through Copper Companies
Another investment vehicle for exposure to copper commodities is companies that specialize in mining and processing copper ore. The companies here are leaders in their industry and are involved in all aspects of the copper supply chain.
The only drawback of investing in companies is that you don’t get direct exposure to the price fluctuations of the metals. Still, these companies are a good option if you don’t want to venture into the futures markets.
Freeport-McMoRan, Inc. (NYSE: FCX): One of the great things about Freeport-McMoRan is that it’s one of the lowest-cost producers of copper in the world. It has copper-mining and -smelting operations across the globe and has a significant presence in Indonesia and Papua New Guinea.
The company specializes in producing highly concentrated copper ore, which it then sells on the open market. FCX also has some operations in gold and silver.
Phelps Dodge Corporation (NYSE: PD): Founded in 1834, Phelps Dodge is one of the oldest mining companies in the United States. It’s also one of the largest manufacturers and producers of copper and copper products in the world. The company has a global presence in copper mining, with operations in the United States, South Africa, the Philippines, and Peru, among others.
Because of its size and experience in the industry, Phelps Dodge is in a good position to capitalize on increased demand for copper.