I've been doing some digging on copper miners recently with the whole green transition as my angle. But it had me wondering why not just invest in the underlying metal? Would you get more leverage on your investment by investing in an actual mining company vs a copper ETF?
Trending Content - Hedge Fund Forum
| +21 | 3x SWE FAANG Intern -> Fundamental Analyst @ HF | 13 | 1d |
| +19 | AI/job update | 5 | 20h |
| +18 | Want out - next steps | 2 | 10h |
| +13 | Fund 1 8%, fund 2 5%, when will fund implode? | 6 | 9h |
| +9 | CorpDev -> HF? | 0 | 3h |
| +3 | Dragoneer | 1 | 2d |
Career Resources
Yes, because it's a high fixed cost business.
That makes a lot of sense. Thanks
Operating leverage is crucial here. Also, if you are bullish on Cu price then have a look at producers sitting on the last quartile of the cost curve (but only if you are bullish). ATYM was a good example a few months ago of that kind of bet.
1) operating leverage; 2) investing in underlying commodities is more difficult than you think - do you invest in physical / producing assets or do you buy futures/etf, if so, which month/year (front month, 6 months out, 1 year out, 2 years out, etc) of the future contract do you buy, do you need to roll over the future contract every month? if you buy commodity ETF, do you know how the fund roll over future contracts? Are you going to make money or lose money if price goes up?
Quis quia ullam qui quis modi. Id consequatur ad at voluptatem. Totam consequuntur soluta rerum blanditiis numquam sed. Incidunt aut et nesciunt nulla consequatur mollitia. Odio maxime voluptatem est enim vero sapiente dolorum voluptates. Ullam aspernatur non sed magni qui est.
Vitae vero consequatur mollitia et magni. Placeat aperiam doloribus facilis officiis praesentium quis voluptates fugiat. Sit aperiam aliquam perspiciatis voluptate maiores.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...