Commodities

  • 14 Jun
    Big Returns on Silver Could Be at the Finish Line, But Are You In for the Wild Ride?

    Big Returns on Silver Could Be at the Finish Line, But Are You In for the Wild Ride?

    • Silver is both a precious metal and a commodity, which makes it a very interesting investment.
    • Silver prices jumped 26% year to date and the market has been in a deficit for 3 years.
    • In the long term, silver will continue to be very volatile but might present excellent investment opportunities for brave investors.

    Introduction

    Silver is a special metal as it is considered both a precious metal and an industrial commodity. Silver is used for solar panels, water filtration, jewelry, electrical contacts and conductors, LCD screens, x-rays, disinfectants and for other various applications. This makes silver have, unlike gold, a pragmatic use influencing the demand for the metal. More →

  • 07 Jun
    Get Ready For A Zinc Deficit

    Get Ready For A Zinc Deficit

    • Zinc prices are already up by 50% this year and more growth is expected.
    • Mine closures and limited mine openings create a supply gap.
    • The World Bank estimates tight zinc markets for the foreseeable future.

    Introduction

    Zinc is the fourth most used metal in the world. It is mostly used for steel galvanization – the process of corrosion-resistant zinc plating. Other uses include alloys such as brass, and dietary supplements. More →

  • 02 Jun
    Metal Madness: Commodity Boom and Bust Cycles

    Metal Madness: Commodity Boom and Bust Cycles

    • Metals have recovered a bit, but even miners are bearish now.
    • Forecasts are not inspiring for at least the next two years.
    • A lot of indicators suggest that there is another commodity boom cycle in the making as the global economy continues to grow and investments in mines decline.

    Introduction

    Commodities had hit rock bottom this winter when iron ore prices went below $40, and alongside iron ore all other commodities except gold were in a slump. This slump in prices provided great returns to investors that had the guts to buy when most thought the world was over for miners. Iron ore prices have rebounded by more than 50% since their lows but are still far from their historical highs. More →

  • 12 May
    Is There Equilibrium in Oil?

    Is There Equilibrium in Oil?

    • Production costs are below current prices and reserves are constantly growing.
    • OPEC’s rosy forecast of $70 a barrel in 2020 is based on a model excluding any disruptions from electric engines or renewable technology developments.
    • Demand in developed countries is declining and the trend might spill over to developing countries.

    Introduction

    Oil prices above $100 a barrel seem impossible but they were a common thing just two years ago. 2014 was the worst year for oil as it tumbled more than 50% from above $100 to below $50 a barrel. In January 2016, oil reached lows not seen since 2001 and 9/11 with prices below $30. The current price of oil quickly rebounded from those lows and is currently around $45 a barrel. More →

    By Sven Carlin Commodities Investiv Daily Oil
  • 10 May
    Is It a Good Idea to Invest in Lithium?

    Is It a Good Idea to Invest in Lithium?

    • Tesla announced building 500,000 cars in 2018 and purchasing the complete current global lithium supply per year.
    • Lithium is not scarce and could easily get oversupplied even with demand growing.
    • Other technologies, like vanadium batteries, will always present a threat to lithium.

    Introduction

    On May 5, Tesla’s (NASDAQ: TSLA) Chairman and CEO Elon Musk announced that TSLA intends to produce half a million cars in 2018. Apart from the craze currently surrounding TSLA, the trend towards electric vehicles is undeniable. An option that does not imply direct investments into electric cars manufacturing companies is an investment in lithium related investments as lithium is the most important material for battery production. This article is going to elaborate further on the investing possibilities, risks and rewards of the lithium option. More →

  • 04 May
    Investment Opportunities in Iron Ore

    Investment Opportunities in Iron Ore

    • Iron ore as a commodity faces long term oversupply.
    • The shift to a service oriented economy lowers Chinese steel demand growth.
    • Short term euphoria makes iron ore and related assets great for trading.

    Introduction 

    Iron ore is the world’s most mined and commonly used metal as 98% of it is used to make steel. As steel is mostly used for infrastructure and building it is not surprising that China is the world’s biggest consumer of iron. China produces 50% of the world’s steel output and 47% of the world’s iron ore. More →

  • 26 Apr
    Copper as an Investing Opportunity

    Copper as an Investing Opportunity

    • Copper has declined due to a strong dollar, increased production and a slowdown in China.
    • In the long term a supply deficit is expected as mining grades are constantly getting lower and demand is steadily growing.

    Introduction

    Commodities in general have been in a slump for the last 5 years; the Dow Jones Commodity Index peaked exactly 5 years ago on April 26 2011. High 2011 commodity prices induced new investments that—combined with low interest rates—made it easier to finance new projects, eventually increasing supply. With limited growth in demand the inevitable result was a contraction in prices. More →

  • 19 Apr
    A Coal Perspective on Commodities

    A Coal Perspective on Commodities

    • Coal has seen lots of bankruptcies but companies continue to produce and the price remains low.
    • Iron ore provides better investing opportunities and a better demand scenario.
    • Low cost and low debt producers with increasing demand should be the best risk/reward investments.

    Introduction

    Yesterday’s newsletter mentioned that there might be opportunities in the commodities markets. Today’s letter is going to elaborate on why the coal mining industry is seeing many bankruptcies and extract important insights in order to enable finding opportunities in other commodities that minimize risks and maximize returns. More →

    By Sven Carlin Commodities Investiv Daily
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