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Low Inventories, Supply Shortages Help Strengthen Industrial Metal ETFs

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Low Inventories, Supply Shortages Help Strengthen Industrial Metal ETFs

Global economies are running on historically low inventories of some of the most important raw materials that keep things going. With an ongoing disparity in demand and supply that continues to flame inflationary pressures, investors can focus on some targeted commodities-related exchange-traded funds to capitalize on the shortages.

The supply problems are particularly noticeable in the metals market where the spot prices of several contracts on the London Metal Exchange are trading higher than contracts for later delivery, reflecting a backwardated market as traders pay up to secure immediate supply, the Financial Times reports.

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