All that glitters may be gold, but there is more to commodities spread betting than just the most popular spot metals.
In uncertain economic times, investors may turn to gold as security or to hedge against currency fluctuations and inflation, but the road to recovery is built, literally, on industry. Industry needs base metals such as copper and aluminium, among others.
The strength of the economic recovery, especially in high demand regions, has a major impact on the price of metals such as copper. When China, the world’s largest copper consumer, announced that first quarter economic growth was faster than it has been in almost three years [1], the three-month copper future on the London Metals Exchange ticked up 0.6%. Similarly, the price of nickel rose to its highest level in two years.
Copper to the fore
On 12 April copper was trading at its highest level in 20 months, touching $8,043.75 per tonne. In fact, the metal has been climbing steadily for almost a month, as positive growth estimates are released in the major industrial countries. Monday’s high was immediately corrected in the days that followed, and blamed on investment speculation rather than actual demand, but the underlying reality will ultimately steer the course.
With IG Index you can spread bet on popular spot metals such as gold and silver, but also on alternative metals such as copper, platinum and palladium. These markets are open for dealing 24 hours a day (except between 10.15pm and 11pm) and have attractive minimum bet sizes and dealing spreads.
Metals futures
As well as the world’s most popular spot metals, IG Index offers a range of three-month futures. These include:
- Aluminium
- Copper
- Lead
- Nickel
- Tin
- Zinc
These markets are available exclusively by phone. You can learn more about dealing hours, minimum bet sizes, our spreads and the deposit factors by viewing our Metals Bet Details. You can also find similar information on our spot metals, plus High Grade Copper, Palladium and Platinum.
For more news and information, we also produce a Commodities Update every Thursday morning, tracking the price movements of popular commodities in the UK.
If you are interested in spread betting on metals, you can find out how to apply for an account to get started.
Source: [1] Bloomberg News (15 April 2010)
Updated: 16/04/10