As the most abundant precious metal found in the Earth's crust, Platinum also commands a high demand, thereby also making this commodity a much-desired investment.
Despite not having the same allure of Gold and Silver, Aluminum serves as a good hedge to combat inflation and deflation. With its high demand connected to construction, industrial and housing industries, the price of Aluminum highly depends on the trends of these sectors, which makes its price movements easier to keep track as compared to other precious metals.
The use of Aluminum originates to the usage of "Alum" dating back to the 5th Century BCE when ancient civilizations used alum as a dyeing mordant. In 1722, a German chemist Friedrich Hoffman theorized that the "base of alum was a distinct Earth". Since then attempts to synthesized alum were made until a successful breakthrough to produce aluminum through alum was achieved by Danish chemist Hans Christian Orsted in 1824.
In 1886, the first large-scale production of aluminum for industrial use was developed by French engineer Paul Heroult and Charles Martin Hall, an American engineer—which became known as the Hall-Heroult Process.
Since then, aluminum became a major component for everyday items such as optical instruments, jewelries, tableware. Aluminum garnered higher demand during World War I and once again during World War II as advances in aviation technology ensued.
By mid-20th century, the use of aluminum rose rapidly from 6.800 metric tons annually to 10,000 tons in 1971 to 50,000 metric tons in 2013. Other than the everyday consumer household or grocery items such as soda cans, the production of aluminum relies heavily on the automobile, electrical, construction and aerospace industries.
Other than the demands of aluminum from the leading industries that rely heavily on it such as the aerospace, consumer good, electrical, transportation and infrastructure, other factors that influences the price of aluminum includes: Input costs, the value of the US Dollar and the Chinese demand.
Why the Chinese Demand?
China uses almost 40% of the world supply of aluminum thereby making it the biggest driver of aluminum price among all countries in the world.
For investors eyeing to invest in Aluminum, here are a few ways to do it.
China, Russia, The United States of America, UAE and Canada are the biggest producers of Aluminum in the world.
Many investors are trading via Contracts for Difference (CFD) and by using this method to trade Aluminum, investors can speculate on the value of aluminum without needing to own a physical aluminum.
There are several ways of engaging in CFD trading of aluminum. All you need to do is find a reliable broker or CFD trading platform such as eToro to open an account and deposit your fund.
Trading aluminum in eToro's CFD trading platform doesn't require any storage fees since you won't be trading any physical commodities.
Currently, Aluminum has a 52-week range of $1,730.75- $2,633.30. Historically, Aluminum reached its all-time high value of $3,271.25 per ton in July 2008.
The market vallue of aluminum when this page was accessed is
If you're considering to invest or trade ALUMINUM CFDs, then it would be much simpler to click the button below. This will take you directly to eToro's trading page for this precious metal.
But before you can trade this precious metal on eToro, you'll need to open an account with them and this will only take a few minutes to accomplish.
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