Should You Invest In Aluminum?

Aluminium is a low-density metal that is light silver in colour. It is the most common element found in the Earth’s crust, but is never found in its pure, natural form. Instead, it must be extracted from bauxite ore found in the topsoil layer. Chemists process this ore to make aluminium oxide, a compound containing one-third aluminium. This is known as the Bayer process and is a primary form of production. Aluminium can also be produced in a secondary process through recycling. Aluminium and aluminium compounds have been used by humans as far back as 5000BC to craft fine pottery. Due to its lightweight and imperviable qualities, aluminium is widely used in industrial industries. It’s often used in the making of aerospace machinery, aluminium cans, electrical wiring and appliances, construction, automobiles and foil. As a commodity, aluminium is similar to nickel as both metals are in high demand in Asian regions like China. Chinese demand has a strong influence over the price movements of aluminium, as do input costs, transportation and construction demand, and the rate of the US dollar. Aluminium is often traded as a CFD, which track the commodity’s price as a spot. Keep track of the price movements of aluminium by adding the stock code Aluminium to your eToro watchlist.