This glitzy metal shares two personifications; One as a valuable form of investment and two as an important requirement for the development of an economy and placing itself as the initial and most crucial commodity input for the industries. Its requirement is most desired in the constructions and manufacturing industry. The growth of an economy would firstly lay a clear emphasis on the construction of a better infrastructure and housing facility for the people. Similarly a growth of an economy would also pose as the development of the industrial sector of the economy. Better manufacturing units and production levels, an overall betterment of the existing manufacturing units and their setups. The intense demand for the information technology highlights the need for this base metal in the future. Why is copper such an important essential requisite for the industry? The answer lies in its properties. This metal is extremely conductive and can be recycled. It also has the property of being highly resistant to corrosion. As per facts 10 to 20 kilograms of copper is used per person in the industrial sector, for mostly products such as computers, laptops, cell phones etc. It has a high capacity to alloy with other metals and thus is used in abundance in the industrial sector.
As China is the largest consumer of copper, the health of its economy poses as a very important factor on the demand for the metal. China has not scored too well in terms of its GDP growth in the latest quarter. Since it depends substantially on its manufacturing sector, the decline in its growth rate portraits the growth of that sector as well. The prices of the red metal have lost their value by 20% and the effect has been bad on the mining industry. But surely there is a ray of hope for the commodity world. The Chinese exports are seeing the brighter side of the day and imports are also rising on a slow path. This factor along with the increase in the domestic consumption power brings an optimistic approach towards the Commodity Investments.
According to the BMO Capital markets there has been a recovery of 3.3 % in the month of August which is significantly witnessed due to the stabilization of the Chinese economy. They have not shown significant levels of growth but equally have also not shown a downward trend in the growth of their economy. The last seven months had been chartered on a downward graph, but the prices of the metals and minerals have been removed of the pressure. The long term reforms of the leadership of China have done a brilliant job in restructuring the economy and bringing in some good pastures to depend upon. The stimulus created by a hike in the consumer spending has brought a booming phase in the constructions sector of the country. China is going to experience a 7% increase in the GDP in the next few years, hoping for a good and better position of the energy industry of the country, the main utilizer of the base metal, helping the growth of the Copper mining companies.
As on 9/19/2013, the top ten asset holders of the Global X Copper Miners ETF are CAPSTONE MINING CORP, FREEPORT COPPR, LUNDIN MINING CORP., FIRST QUANTUM MINERALS LT and IMPERIAL METALS CORP, JIANGXI COPPER COMPANY, GLENCORE INTERNATIONAL, VEDANTA RESOURCES, HUDBAY MINERALS and ANTOFAGASTA PLC respectively. They account for 54.1% of the total assets of the Copper ETF.
Global X COPX ETF is one of the Copper ETF that provide a progressive and holistic approach towards the commodity invest . COPX offers exposure to firms and businesses involved in the copper mining industry. Mining companies based in Canada, United States and Australia offer to hold the maximum investments from this Fund. Approximately 68% of the assets belonging to this fund are held in theses three regions of the globe.