If someone told you that you should invest in some titanium, that is pretty solid advice. Here are three more things that you need to know before you add titanium to your investment portfolio.
#1. Titanium & Manufacturing
Before you invest in titanium, you should understand the industries that it plays a roll in. Understanding this will help you better determine when to enter into the titanium playing field and when you may want to exit if that market experiences any crashes.
One of the biggest markets that titanium is influenced by is manufacturing. Titanium is used in all sorts of items, ranging from helicopters to golf clubs to laptops and tablets. A derivative of titanium, titanium dioxide, is also used in lots of household products. It is found in many cleaning products and bathroom products and even in food.
As you can see, titanium has a very far reach in the manufacturing world.
#2. Exchange-Traded Fund
One way that you can get into the titanium market is by investing in an exchange-traded fund, which is often referred to as an ETF. There are not many ETFs that specialize just in titanium. Instead, you will be looking to invest in companies that mine rare earth metals, with titanium being one of the rare earth metals. You may find a few ETFs that are directly tied to titanium, but your best bet is to find a company that mines rare earth metals. Be sure to research the other metals that they mind to ensure that the company overall is a good investment beyond their interest in titanium and find out what percentage of their overall mining efforts are connected to titanium.
#3. Publicly Traded Stock
Another way to invest in titanium is through publicly traded stock. Once again, like with the ETF, you are going to find just a few companies that publicly trade stock and work exclusively with titanium. You'll be able to purchase a lot more stock if you focus on companies that work with titanium overall, such as companies that manufacture products made out of titanium. With this type of indirect investment, though, you'll want to do your homework and make sure that whatever they manufacture has long-term viability.
Titanium is a solid metal that has a lot of uses which makes it very valuable. It is a worthwhile metal to add to your investment portfolio, either directly or indirectly. Contact a company like Pension Planning inc to learn more.