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Top 4 reasons gold is better investment option than copper

Gold bullion vs Gold StockThe prices of gold and copper got a boost in the previous days in the Asia because the figures were quite better than the expectations. On the New York Mercantile Exchange Comex division showed a rise in gold from 0.30% to $1,186.80 a troy ounce. The global investors always awaited a good deal to get maximum return on their investment. The copper stocks are considered better investment opportunities for rising countries. The copper is a good investment, but in China, and in India, it is not good than gold. The china is copper feeding-frenzy, because the import of copper in the 8th month of 2009 was 2.3 Mt. The gold and copper vary from each other, and each metal has its own demand in the market based on the geographic region.

Liquidity

The gold is more liquid than copper because it is acceptable all over the world, and you can trade in it in any country of the world. The copper is good in China, but not in India because the people of India like to invest in gold. The liquidity of the gold is quite better than the copper; therefore, the gold is a better option to invest. It is a safe choice to become more integrated and diversified your portfolios. The integration of gold will increase the diversification of your portfolio and increase the liquidation leads to the sale of gold on time.

Market Demand

The gold has better market demand than copper especially in countries like India; the gold is an excellent choice than copper. People prefer it to cut their risks in the market because the gold prices went up at the time of crises. Gold is better for its price value and no reaction with other metals. The annual global copper production is 180,000 tons of gold.

Lack of Copper Mines

The global copper production is under stress because the gold has more reserves than copper. The gold mines are more than copper mines; therefore, investors have more trust on gold. The value of gold is higher than other metals because of a difference between demand and supply. There is no existence of infrastructure in the remote areas.

Gold is More Valuable than Copper

The gold is easy to store because investors can keep them in the house in the form of jewelry. The spot price per pound is $2.79 for copper and the price of gold is 1187.6 US dollars. The investors can earn more profit by investing in the gold as compared to copper.

 

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About Emaad Qureshi