Gold Got You Down? Here Are 5 Hard Asset Alternatives

Diversify your portfolio through these other valuable metals

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Gold Alternative #5: Copper

CopperPipes185 Gold Got You Down? Here Are 5 Hard Asset AlternativesYou don’t have to roll thousands of pennies to get in on copper — although you could. The metal has a few things going for it: affordability, liquidity, flexibility. Plus, it’s a good conductor or electricity, so you can find it in everything from electronics to pipes in your home.

Yes, copper is much more of a staple than the metals found in fancy gadgets — an industrial recovery simply cannot happen without it. And with homebuilder confidence on the rise, on top of lower supply and rising demand, copper could be on its way up — despite the fact that China, the metal’s biggest customer, still faces slow near-term growth. Copper hit multiyear highs around $4.50 a year ago, but has since dropped off by about $1.

One option to play copper is the iPath Dow Jones-UBS Copper Subindex Total Return SM ETN (NYSE:JJC) — unlike the other trusts, though, JJC doesn’t actually hold copper; as an exchange-traded note, it’s instead a debt security that merely tracks the price of copper. The fund is down a little more than 1% year-to-date, and saw a bigger hit over the entire past year. The PowerShares DB Base Metals ETF (NYSE:DBB) is divided evenly between copper, aluminum and zinc, and has moved similarly to JJC in the past year.

Miners are another way to play copper. Options include Southern Copper (NYSE:SCCO), as well as diversified miners Freeport McMoRan (NYSE:FCX) and Teck Resources (NYSE:TCK).

As of this writing, Alyssa Oursler did not own a position in any of the aforementioned stocks.


Article printed from InvestorPlace Media, http://investorplace.com/2012/07/gold-got-you-down-heres-5-hard-asset-alternatives/.

©2014 InvestorPlace Media, LLC

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