Zinc: A Bull Market That’s Just Starting
Gold is taking a backseat to zinc this year.
Don’t get me wrong — I’m not anti-gold. After all, despite its recent pullback, the yellow metal is still up almost 10% this year. And this is despite financial publications and the mainstream media hailing the renewal of a four-year bear market in gold at the end of 2016. (Give me a break.)
But as our commodities expert Matt Badiali has pointed out to his readers this year, zinc has delivered solid gains — such as 50% and 60% — in just the last five months. And no one is talking about it.
When I first heard about this new “golden” bull market, I admit, I was perplexed. I wasn’t fully aware of how much this metal played a part in our lives. For instance:
- Zinc is the fourth most abundant element in the earth, after hydrogen, nickel and copper.
- It’s the third most used nonferrous metal after aluminum and copper. In fact, if you mix it with copper, you create brass, one of the world’s most widely used alloys.
- Currently, the biggest demand for zinc is to galvanize steel and iron, a process that prevents rusting. The metal is so commonly used for this now that most cars hold about 38 pounds of it — and almost half of that is to protect them from rust.
That means that every day, you’re probably encountering some form of machinery or piece of infrastructure that is chock-full of the metal.
So, you can see the ability for high demand here — and that demand is rising. For example, Matt says: “China’s imports of zinc slabs are up 353% this year, from 15,000 metric tons in February to 68,045 in July.”
Meanwhile, global zinc production is falling. It fell from 1.18 million metric tons in December 2016 to 1.09 million metric tons in July, according to Bloomberg.
All of that has helped create a bull market in this metal. Zinc’s price has popped 87% from January 2016 to February 2017, as you can see in the chart below.
That’s why Matt recommended multiple zinc-related trades to readers of his Real Wealth Strategist service. One is up 50% in five months and another is up about 60% in the same time frame.
Here’s what his readers have said about the picks:
Don D. writes: “Your copper and zinc-mining stocks are currently among the best performers in my portfolio.”
Ron R. writes: “The zinc opportunity is exciting and potentially life-changing for me.”
Marc M. writes: “I just sold half my position in [your zinc miner] for 83%.”
If you missed out on these trades, don’t worry! You haven’t missed this bull market.
There’s much more upside ahead. That’s why, last week, Matt released a new zinc recommendation that’s set to soar soon.
It’s still a buy, so if you’re interested in profiting from zinc’s continued rise, just click here.
I hope you all have a great rest of your weekend.
Catch you next week.
Managing Editor, Banyan Hill Publishing