Jun 19, 2011

Posted by in Commodities | 0 Comments

Copper Mining Stocks

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What To Know When Buying Copper Mining Stocks

If looking into copper mining stocks, there are a few things to consider before buying. First, consider what drives the copper market, then look at general economic health, and the best copper mining stocks. These things should all be taken under advisement before any stock is purchased.

Stock has long been an acceptable way of investing money. Generally, one buys stock and then lets it ride with the market. With some luck, the money can increase drastically. On the other hand, if the stock market falls the money will decrease. Because of this, any stock purchase is a gamble. With that said, though, some stocks are safer than others, and copper is a fairly safe bet.

When buying stock, it is always a good thing to know what it is that drives that particular stock. Copper, unlike gold penny stocks, is primarily driven by the construction business. The most common uses for copper are pipes and wires. This is the biggest reason copper is a safer bet than some things. As the population rises and creates more need for homes, copper is used more and more often.

Stock will always be affected by the market. The market is driven by economic health. Global economy directly affects how much people have to spend, which affects the stock market in turn. If researching copper mining stocks, be sure to take global economy into account instead of just the economic situation of one country. Pay special attention to the economy of the country the mining corporation is based in.

Popular copper mining stocks

BHP Billiton (NYSE:BHP): This is an Australian mining company that is one of the five biggest copper producers in the world.

Freeport-McMoRan (NYSE:FCX): This company has mines in both North and South America. It is another of the world’s largest mines.

The Newmont Mining Corporation (NYSE:NEM): This is a company based in Colorado. It is one of the largest producers of copper ore and finished copper products. It has mines in Mexico, Asia, Australia and South America as well as in the United States.

Pacific Copper Corp (NASDAQ:PPFP): A new company, it is searching for new mines. It owns a couple of properties that have the potential to get it off the ground in a hurry.

Rio Tinto (NYSE:RTP): Yet another mining giant, this company is based in the UK and has mines on every continent, with the exception of Antarctica.

Copper mining stocks can help secure financial rewards. They can also, however, lose money. That is the nature of the stock market, and should always be taken into consideration when buying stock. If, however, there is a little extra cash and the time to let it stew, the stock market and copper mining stocks can be an investment to remember.

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