Top 3 Best Tin Stocks to Watch
When talking about valuable metals, tin is hardly the first one that comes to mind. But this commodity has been drawing attention from investors recently.
The best tin stocks to watch have become an interesting alternative if you are looking for ways to diversify your portfolio within the precious or valuable metals sector. However, the risks of investing always must be considered.
In this article, we will go through the basics of tin stocks. You can learn more about why tin is somewhat valuable for the tech industry and its uses.
We will also take a look at the best tin stocks available right now, their advantages and disadvantages, and how you can invest in them.
Ready to dive in? Let’s get started.
Table of Contents
Best Tin Stocks: Introduction
Demand for tin is directly related to the electronics industry.
Around half of the yearly tin production is used in solders for circuit boards, and, to a lesser extent, semiconductors.
Aside from that, tin has relatively limited applications. It’s used in the food industry as a coating for cans, which delays corrosion. Tin can also be used to form alloys, which have extremely specific uses - such as pipe organs and coils for magnet generators.
Despite its somewhat limited applications, the demand for tin is highly volatile. Tin prices will shoot up whenever there is a high demand for electronics but will also dip significantly when the electronics industry grows stale.
In mid-to-late 2023, tin became the centre of attention. Wa State, an autonomous region in Myanmar, announced a sudden halt of all tin-related operations - including mining, processing plants, and even raw ore transportation.
Myanmar is the world’s third-largest tin producer, with Wa State accounting for some 70% of the country’s production. The news naturally put tin stocks in the spotlight, as fears of a potential tin shortage emerged.
What are Tin Stocks?
You won’t be investing in tin directly, however, but rather in companies that work with tin-related activities - such as mining and processing.
As mentioned earlier, tin stocks will usually follow the electronics market. When the demand for electronics goes up, so does the demand for tin. Likewise, demand for tin goes down when the market for electronics slows down.
As is often the case for most commodities, tin stocks can be quite volatile. Aside from demand itself, geopolitical factors can also come into play - as the Wa State ban on tin production shows.
The early fears turned out to be somewhat unfounded, however. Following a surge during the pandemic, demand for electronics has gone down significantly over the past two years, driven by high inflation.
There are no signs of a potential shortage so far - in fact, there was a surplus in the early months of 2024, as the electronics market is still fairly slow.
The situation is still worth monitoring if you're interested in investing in tin stocks. Wa State’s government intends to lift the ban in mid-February, but it will be some time before production picks up steam.
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Best Tin Stocks: Advantages and Disadvantages
Any investment will have its upsides, but also considerable risks.
Naturally, if you are considering investing in tin stocks, you will need to take both into account. We will now look at some of the pros and cons of tin stocks.
Best Tin Stocks: Advantages
- Investing in tin stocks will provide you with exposure to the commodities market, which is an interesting option to diversify an investment portfolio.
- Following a down year in 2022, the tin market has been steadily on the rise again since 2023.
- You will have a few options to choose from for tin stocks, such as mining and processing.
Best Tin Stocks: Disadvantages
- Since it has limited usage, tin stocks are somewhat reliant on the electronics market. You will need to pay attention to both markets at the same time.
- Tin stocks are extremely volatile. While they experienced some impressive highs during the pandemic, they also took a bit of a nosedive later.
- Like many other commodities, tin stocks can also shift dramatically depending on geopolitics, environmental concerns, accidents, and so on.
Top 3 Best Tin Stocks to Watch
We will now take a look at the best tin stocks available for you, including their advantages and disadvantages.
1. BHP Group Ltd.
The Australian multinational is the world’s biggest mining company. While BHP’s returns come largely from iron mining, the Melbourne-based juggernaut also owns a few tin mining sites.
Advantage of BHP stocks:
- BHP stocks offer solid returns in the long term, as the Australian mining giant continues to yield dividends.
Disadvantage of BHP stocks:
- The mining sector is extremely volatile. There is always the risk of a slowdown in demand, which in turn could lead to a drop in BHP’s stocks.
You can trade BHP CFDs in both price directions at Admirals, or invest in the BHP shares directly.
2. Rio Tinto PLC
The Australian-British mining company has been around for well over a century. Rio Tinto has a variety of assets as well, including tin mines.
Advantage of Rio Tinto stocks:
- Rio Tinto mines a wide variety of minerals, which include mainly iron, aluminium, and copper, aside from tin. Additionally, the Australian-British company has been investing in renewable energy solutions to reduce its carbon footprint, having recently introduced solar energy to power its aluminium-production operations.
Disadvantage of Rio Tinto stocks:
- Once again, the cyclical nature of the mining business makes Rio Tinto stocks quite volatile.
It's possible to trade the RIO CFD in both price directions, or invest in RIO shares directly.
3. Aurubis AG
Unlike the other two companies, Aurubis isn’t in the mining segment. The Belgian company is one of the world’s largest recycling companies. Aurubis processes secondary materials (like scrap metal) into metals, including tin.
Advantage of Aurubis stocks:
- Since Aurubis relies on recycling materials, the Belgian company is subject to less volatility. With the world continuously shifting towards greener solutions, Aurubis could be well-positioned in this segment.
Disadvantage of Aurubis stocks:
- Aurubis was involved in a large-scale scandal in 2023, as a private investigation launched by the company itself uncovered a massive fraud scheme involving its shipments of scrap metal. Aurubis’ stocks took a big hit as a result and have yet to fully recover.
There is the option to trade Aurubis CFDs in both price directions, as well as investing directly in the shares.
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How to Buy Tin Stocks
A certified and regulated broker, like Admirals, is the easiest and safest method to buy tin stocks. At Admirals, you can start small and invest in different stocks, creating a diversified portfolio, which can include tin stocks as well.
If you are still inexperienced, then you can start with a demo account, which doesn’t use real assets. This way, you won’t be risking losses, and you will be able to gain experience and develop an investing strategy.
Once you are feeling confident, you can sign up for a live account and buy tin stocks with your assets.
At Admirals, you can invest with the renowned MetaTrader 5, the top multi-asset tool for traders and investors. With MetaTrader 5, you will have access to several different features:
- User-friendly platform.
- Free market data and news.
- Educational tools.
- Automated trading robots.
- Advanced charting options.
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Best Tin Stocks to Watch: Conclusion
Tin stocks can be an interesting addition to your investment portfolio, offering you exposure to the commodities market.
Despite not being a particularly valuable metal, tin is an important material for the electronics industry. Whenever the electronics market is on the rise, then tin stocks are set to follow that. Likewise, tin stocks can likely decline once the electronics market slows down.
Between mining and processing, you will have different options to choose from for tin stocks. Keep in mind that commodities are quite volatile, and tin is no exception.
Make sure to understand these risks and consider your investing strategy before committing to trading or investing in the best tin stocks to watch.
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What are the best tin stocks to watch?
While always subjective, potentially some of the top tin stocks to watch are as follows:
- BHP Group Ltd.
- Rio Tinto PLC
- Aurubis AG
Who is the largest producer of tin?
The largest producer of tin globally is China, with Indonesia and Pero coming in second and third, as of the first quarter of 2024.
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