Zinc

  • 15 Jun
    Is Zinc Still A Good Investment?

    Is Zinc Still A Good Investment?

    • Zinc is up 20% in the last 12 months.
    • Global zinc inventories and supply deficits might make zinc not just a good investment, but a great investment.
    • The problem is that it’s very difficult to find pure zinc plays.

    Introduction

    Exactly a year ago, I wrote about how between mine closures with limited mine openings and increasing demand, a supply gap in the zinc market was about to be created (article available here). Since then, zinc prices are up about 20% and were up 46% for a moment in November 2016. More →

  • 28 Dec
    2017 Looks Like Another Excellent Trading Year

    2017 Looks Like Another Excellent Trading Year

    • Rebalancing your portfolio between sectors and markets should lower your risks and increase your returns in 2017.
    • 2016 is an excellent example of how such a strategy works when the general stock market is overvalued.
    • Things like avoiding REITs in August 2016 or entering metals will be easy to spot and act upon, even in 2017.

    Approaching The Current Market Risk Reward Puzzle

    A recent Wall Street Journal article raised the question of whether investors looking to get into the market now are too late for the Dow 20,000 party. Many investors watched the 7-year stock bull market from the side-lines after they got burned during the latest financial crisis and didn’t overcome their anxiety and invest again. The article suggested that investing now is a good thing to do if you are a long-term investor. More →

  • 16 Nov
    The Metal Conundrum After Trump’s Victory

    The Metal Conundrum After Trump’s Victory

    • The current copper spike may not last, but it shows copper’s long-term potential, especially if part of the announced infrastructure program materializes.
    • Unlike copper, other metals aren’t in a sweet spot due to unlimited supply, and recent and large price increases.
    • Gold is the riskiest of all metals, especially now with no more election uncertainty, a stronger dollar, and the expected FED action in December that will have us seeing higher interest rates.

    Introduction

    In the last couple of weeks, metal prices have moved.

    Copper has made an historic surge of 21.5% in the last two weeks, while gold fell 7.5% from its peak.

    As Trump won the election, the expectation of intensified construction and increased investments in infrastructure have pushed copper prices higher while gold suffered as the world didn’t come to an end. The short term moves in metal prices aren’t that significant as they are influenced mostly by speculators, but an analysis can show us where the long-term risks and opportunities lie. More →

  • 03 Nov
    Which Metals Are Shining The Most In 2016?

    Which Metals Are Shining The Most In 2016?

    • The issue with aluminum and iron ore is that there is plenty of both.
    • Platinum demand is related to demand for internal combustion engine cars.
    • Zinc might continue to be a winner if China continues to grow at the rates it has been.

    Introduction

    As metal prices are very volatile in nature, it’s important to regularly check on what’s going on in order to see where the greatest opportunities and risks are.

    Today we’ll walk through the main investable metals, and look at structural trends, demand and supply balances, and investing opportunities. More →

  • 18 Aug
    Commodities: Stick To The Fundamentals, Beware Of Speculation

    Commodities: Stick To The Fundamentals, Beware Of Speculation

    • Oil prices are increasing the number of rigs, putting pressure on prices.
    • Soros sold his gold, should you?
    • Iron ore is hot, but waiting until winter might provide better purchasing opportunities.

    Introduction

    Yesterday we discussed how Treasury Inflation-Protection Securities (or TIPS) are a great protection during times of inflation. Today we are going to take a deeper look into another great inflationary protection, commodities.

    The general feeling is that commodities have surged since January, but there is a high level of divergence. This divergence in commodity price movements is due to speculation in some commodities and fundamental reasons in others. More →

  • 27 Jul
    Will A Bet On Commodities Pay Now?

    Will A Bet On Commodities Pay Now?

    • Iron ore prices are falling as supply continues to grow, while copper and zinc prices show signs of supply gaps forming.
    • Low exploration and discoveries indicate that metals will be winners again in the future.
    • The possibility of future inflation increases the appeal of commodities.

    Introduction

    Diversification is the ultimate protection against various economic factors, in recessions you might want to hold gold or treasuries, in inflationary times you want to be long stocks and commodities. Therefore it is very important to always know what is happening in each potential diversification sector. 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 →