Since ancient civilizations, precious metals have long been used as currency and a store of value. These metals find value in their rarity and are used in several industries today. Copper, for example, is used for everything from electrical and plumbing to construction and transportation, thanks to its thermal and electrical conductivity.
As a result, copper remains in high demand and can be a strategic investment for investors.(1) With an over 40% increase in demand expected by 2040, now could be the perfect time to consider whether to invest in copper.(2)
How to invest in copper
With demand for copper at a high in 2025, it is an increasingly popular investment choice.(3) While it does not typically generate regular cash flow, it still is considered a store of value and allows you to diversify your portfolio.
If you are interested in how to invest in copper, you have several options.
Buy physical copper
Many investors wonder how much a copper bar is worth and whether it is worth the investment. Although not without risks, copper can be a steady investment for long-term gains.(4) It is available in physical bullion bars or coins, similar to buying gold or investing in silver.
You can purchase physical copper through online or local dealers, as well as private collectors. Be sure to assess the spot price to ensure you are making a solid investment. Coins may be considered collectibles and, thus, may carry a higher value.
Benefits of investing in physical copper
- Direct ownership. Purchase copper in your choice of bars, coins or rounds.
- Flexibility. Copper is available in multiple sizes and values, so you can make the investment that is right for you.
- No company exposure. Because you are investing in a physical commodity, you are not exposed to the challenges or poor performance of the mining companies themselves.
- Increase in demand. Increased demand could demand a higher premium in the event of a shortage.
Drawbacks of investing in physical copper
- Storage. You will need to find a place to store your copper, which is an additional expense and can quickly become a problem if you make a large investment.
- Liquidity challenges. It can be more difficult to sell off physical copper than copper stocks that trade on an exchange.
- No dividends. Physical copper does not pay dividends like mining stocks might.
- Transaction costs. Transaction fees typically apply, eating into your potential earnings.
Where’s the best place to buy copper bullion online?
The best place to buy copper bars and coins online can depend on factors such as reputation, reliability, pricing and customer service. Some reputable online dealers and platforms for purchasing copper bullion include:
- APMEX
- JM Bullion
- BullionVault
- SD Bullion
Invest in copper stocks and ETFs
Investing in copper stocks and exchange-traded funds (ETFs) is another popular way to buy copper.
With copper stocks, individuals typically invest in copper mining companies. When copper prices rise, it also increases the revenue of mining companies, which can boost share value.
Additionally, you stand to earn dividends based on performance. When the company performs well, investors share in those profits through dividends. However, not all companies may pay dividends, so you must choose the right stock if dividends are important to you.
Similar to stocks, ETFs are another option when you want to buy copper. With these investment funds, you receive exposure to potential gains without investing directly in individual company stocks or futures contracts.
Different ETFs may represent mining company stocks, copper bullion or copper futures, while others may be leveraged. Either way, ETFs provide greater protection for investors since they hold multiple mining stocks instead of just a few.
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Copper stocks to buy
| Southern Copper Corporation (SCCO) | Copper mining, smelting and refining in Peru, Mexico, Argentina, Ecuador and Chile. | HOW TO BUY |
| Freeport-McMoRan Inc. (FCX) | Copper mining in North America, South America and Indonesia | HOW TO BUY |
| MAC Copper Limited (MTAL) | Acquires and operates metals and mining businesses in Australia; operates Cornish, Scottish and Australian underground copper mine in Australia | |
| Ivanhoe Electric Inc. (IE) | 100% interest in Arizona’s Santa Cruz Copper Project | HOW TO BUY |
Copper ETF list
| Global X Copper Miners ETF (COPX) | Includes a range of copper mining companies and seeks to track the Solactive Global Copper Miners Total Return Index. |
| United States Copper Index ETF (CPER) | Seeks to track the SummerHaven Copper Index Total Return, showing daily changes in percentage terms of its shares’ per share net asset value (NAV). |
| iShares Copper and Metals Mining ETF (ICOP) | Seeks to track the investment results of the STOXX Global Copper and Metals Mining Index |
| iPath Series B Bloomberg Copper Subindex Total Return ETN (JJC) | Seeks to track the performance of the Bloomberg Copper Subindex Total Return |
Benefits of investing in copper stocks and ETFs
- Liquidity. Stocks and ETFs are available for trading on major stock exchanges.
- Diversification. Copper stocks and ETFs allow you to diversify your portfolio through investments in multiple companies.
- Increasing global demand. Experts predict an increasing demand for copper over the next decades.
Drawbacks of investing in copper stocks and ETFs
- Company risk. Not all miners are large, established companies, so it is important to research the companies behind the copper stock or ETF to ensure it is worthy of your copper investment.
- No physical holdings. With copper stocks and ETFs, you do not have physical ownership of copper, putting you at a disadvantage if physical copper prices increase.
- Heavily influenced by global events. Economic shifts, policy changes and disruptions to mining can all quickly impact the share price of copper stocks and ETFs.
- Easily influenced. Mining stocks and ETFs stand to be more easily influenced by operational risks that companies face, like mining accidents and environmental legislation.
Buy copper futures
Copper futures can be favorable for short-term gains from leveraged bets on price movements but can be highly risky.
With a futures contract, investors commit to buying or selling a specific amount of copper on a certain date and at a certain price. The position can be closed before the contract expires or rolled into a new contract. If the value decreases, you may face a margin call to keep your position and avoid a loss.
With futures trading, borrowers trade with leverage, which magnifies potential gains and losses.
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Benefits of buying copper futures
- Greater leverage. Control a large amount of copper with a small upfront margin.
- No storage needed. Investors do not have to worry about physically storing copper unless they take delivery.
- Steady demand. Regular demand for copper can lead to appreciation in futures contracts.
- High liquidity. Futures trade on regulated exchanges and are standardized for high liquidity.
Drawbacks of buying copper futures
- Complexity. It requires an understanding of futures mechanics, margin maintenance and contract specifications.
- High risk. Even smaller price movements can have a big impact with large percentage gains or losses.
- Margin calls. Futures contracts are subject to margin calls that require additional funds to hold your position.
- No dividends. Copper futures do not pay dividends.
Can you invest in copper in an IRA?
You cannot hold physical copper in an IRA, according to Internal Revenue Service (IRS) rules. The IRS limits IRA investments to gold, silver, platinum and palladium.(5) However, you can invest in copper in your IRA through copper stocks, ETFs, options or futures, depending on your broker.
Factors that affect copper pricing
The price of copper can fluctuate greatly over time. This fluctuation is due to several factors.
- Market factors. Supply and demand for both physical copper and copper contracts affect the price, with greater demand and lower supply raising prices.
- Economic conditions. As economic conditions across the globe fluctuate, they impact the demand for copper, potentially interrupting mining and increasing its value as supply becomes short. This is especially true for countries like the US and China, which depend on copper for industries like manufacturing and construction.
- Climate disruptions. Weather-related events and natural disasters, such as floods and hurricanes, can disrupt the mining of copper, affecting supply.
- Green initiatives. As a conduit, copper is considered one of the best renewable energy resources, reducing CO2 emissions and representing almost one-quarter of global power.(6)
Bottom line
With demand for copper continuing to rise, now is a great time to consider this precious metal as an investment. When deciding exactly how to buy copper, you have plenty of options between physical copper and copper stocks, ETFs and futures.
Consider one of the best brokerage accounts to begin investing in copper through stocks, ETFs or futures.
Frequently asked questions
Is copper a good investment?
With demand for copper projected to grow steadily in the coming years, copper can be a timely investment to diversify your portfolio. However, no growth is ever guaranteed, and not all investments pay dividends. Experts recommend investors insulate their portfolios with different types of investments to hedge against risk.
What is the best stock to buy for copper?
Several leading stocks for copper include Southern Copper Corporation (SCCO), Freeport-McMoRan Inc. (FCX), MAC Copper Limited (MTAL) and Ivanhoe Electric Inc. (IE). Ultimately, the best copper stocks to buy will depend on the market and your overall investment objectives.
