Summary: Although it is in increasingly short supply, zinc still has a large number of applications in all sorts of industries, which makes it an attractive investment option for many investors. In this guide, you will learn how to invest in zinc through a regulated online broker, such as eToro.
Best Commodities Broker for Intermediate Traders and Investors
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Can you invest in zinc?
Yes, you can invest in zinc and other base metals, such as lead, copper and aluminum, on regulated and licensed online brokers such as eToro. However, note that you will not buy actual zinc when investing on such a platform. Instead, you will be investing in zinc contracts for differences (CFDs).
CFDs allow investors to generate a profit not by trading physical bullions but by speculating on zinc price movements. In other words, investors will make predictions and generate income based on their accuracy.
How to invest in zinc
The easiest and quickest way to invest in zinc is through a regulated commodity-exchange platform like eToro. eToro is a reliable broker with a good track record, a Financial Conduct Authority (FCA), and more than 30 million users worldwide trading more than 3,000 different assets.
How to invest in zinc: Step-by-step
You can buy zinc at eToro in just four easy steps:
- Step 1: Go to eToro and sign up for an account (either personal or business);
- Step 2: Specify how much money you want to transfer to your new account;
- Step 3: Link your card or other payment methods of your choice to your eToro account and transfer the specified amount in a fiat currency;
- Step 4: Head over to the Commodities section, look up and select ‘Zinc’ from the menu, and specify the amount you want to buy.
Disclaimer: 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. This content is not intended for US users. eToro USA LLC does not offer CFDs, only real Crypto assets, Stocks and ETFs are available.
Best Commodities Broker for Intermediate Traders and Investors
-
Invest in 30+ commodities and 3,000+ other assets including stocks and cryptocurrencies.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
Zinc price today
Best ways to invest in zinc
Before investing in zinc, it is obligatory that you consider your investment goals, available capital, and preferred trading strategy, that is, whether you are more of an active or passive investor. While doing your research, you can look into the following investment methods:
- Zinc contracts for difference (CFDs): CFDs are financial instruments that offer investors the opportunity to speculate on the price movements of zinc without having to own the asset itself. In essence, CFDs act as agreements or contracts between investors and sellers, which allow them to easily exchange the difference in the value of the asset between its opening and closing prices;
- Zinc exchange-traded funds (ETFs): ETFs are a passive investment approach designed to follow and mirror the performance of the zinc industry at large. When buying zinc ETFs, you become an owner of a fund that features zinc as one of the assets. The price of zinc will generally reflect the overall performance of the fund and the broader zinc industry;
- Zinc futures: Zinc futures are financial contracts that obligate investors to buy or sell a specified amount of zinc at a predetermined price at some future date. Unlike, for example, CFDs, which are all about price differences, futures contracts require the actual delivery of the asset under predetermined conditions.
Is zinc a good investment?
Zinc is a base metal with a large number of applications in the construction, transportation, and medical industries. Therefore, its performance as an asset depends largely on economic growth and industrial activity at large. That makes it essential that you assess zinc supply and demand dynamics, current and projected market trends, and other factors that can influence the metal’s price.
Here are a few points to consider when evaluating the profitability of zinc:
- Supply and demand: Analyze the supply and demand balance for zinc. If demand for zinc is expected to exceed supply due to factors like increased industrial production or supply disruptions, it could potentially lead to higher prices. Currently, the surplus of zinc seems to be falling, so selling it might be a better idea;
- Market projections: Research market forecasts and trends related not just to zinc but base metals in general. In addition, consider factors such as urbanization, as they always contribute to the demand for zinc;
- Price volatility: Commodities such as zinc are often seen as hedges against inflation. However, that does not mean they are unaffected by, for example, changes in market sentiment and large-scale geopolitical events.
Remember
Common mistakes to avoid when investing in zinc
When investing in zinc and any other commodity, it’s important to be aware of some of the more common mistakes that investors often make. Here are some usual mistakes to avoid when investing in zinc:
- Failing to diversify: Building your entire investment portfolio around a single asset is risky. On the other hand, diversifying across different asset classes helps mitigate damages your portfolio might suffer when one asset starts performing poorly;
- Ignoring risk management: Risk management is a crucial element of any solid investment strategy. For starters, set clear investment goals, establish stop-loss orders;
- Short-term speculation: Speculating on short-term price movements in hopes of making a quick profit without a solid understanding of the market is a recipe for disaster. Instead, focus on long-term market trends and invest patiently;
- Emotional investing: Emotional decision-making typically leads to unsuccessful investments, so don’t invest greedily or impulsively based on short-term price movements.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about how to invest in zinc
Can you invest in zinc?
Yes, you can invest in zinc through regulated commodity-exchange platforms like eToro.
How to invest in zinc?
To invest in zinc, register at a commodity-exchange platform that features zinc as an asset, such as eToro.
Where to invest in zinc?
You can buy zinc via regulated brokerages that feature zinc as a trading commodity, for example, eToro.
Is investing in zinc safe?
Investing in zinc is safe if you do it through a regulated broker.
Is zinc a good investment?
Whether zinc is a good investment option will depend on several factors. Those include the state of the base metal industry, the global economic environment, your investment goals, and your risk tolerance.
How to invest in lithium, cobalt, and zinc?
To invest in lithium, cobalt, and, zinc, you can open a trading account at a commodity trading platform such as eToro.
Best Commodities Broker for Intermediate Traders and Investors
-
Invest in 30+ commodities and 3,000+ other assets including stocks and cryptocurrencies.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
