They may lack the glitz of silver and gold, but industrial metals are a key ingredient in the modernization of the developing world.
Overshadowed by the historic rise of gold bullion over $1,900 an ounce and the tripling in silver prices in less than three years, copper, palladium and other metals have also seen sharp increases.
Those gains are expected to continue as rising long-term demand for raw materials meets head-on with supply constraints.
“A lot of the attraction of industrial metals today is emerging market demand,’’ says Joe Foster, gold analyst for the Van Eck Global Hard Assets Fund, which invests in metals and other commodities.
Like commodities in general, metals help investors diversify as their performance bears little resemblance to that of stocks. “We find metals, particularly palladium, platinum, copper, lead, and tin to be of very good use as diversifiers within our portfolio,’’ says Jonathan Citrin of advisory firm Citrin Group in Birmingham, MI, who allocates 17 percent of client portfolios to metals.Page 1 of 5 | Next Page