The base metals were mixed on Thursday. Copper went on a wild ride, rising and falling sharply through a 10-cent range before settling little changed at $1.8571/lb., down just a penny.
The market is throwing away resource stocks amid panic on Wall Street.”You’d think the world will never again need gold, silver, platinum, oil, natural gas, uranium, copper, lead or zinc,” says Russell McDougal at Investor’s Daily Edge.
The old adage “the time to buy is when blood is running in the streets” remains true, however.
Russell says the stock shakeout provides a great opportunity for savvy investors. He recommends buying up quality resource stocks now and holding them for long-term profits.
As Wall Street descends into chaos, many investors are happy to sit on the sidelines holding cash. But there are still profits to be made for big-picture investors.
Chris Mayer says the next “megatrend” will be a $41 trillion global infrastructure boom. Urbanization on a massive scale in China and India requires huge construction projects. And this will create huge demand for building materials (like cement and steel) and basic commodities (iron ore, copper and nickel).
Chris says power-grid builder ABB (NYSE:ABB) and road-building equipment maker Astec Industries (NASDAQ:ASTE) are stocks to watch…
Mining is an expensive business. So if commodities prices fall sharply many mines are forced to close rather than operate at a loss. When this happens supply tightens and prices begin to recover. Chris Mayer says there are signs this is happening now… and a rally in mining stocks is on its way.
It was a good day for the base metals Wednesday as copper, nickel, zinc, and aluminum all recovered from their falls the previous day, while lead was the sole loser. Copper fell steadily for most of the day, but shot up almost vertically around 11am to finish up 5 ½ cents at $3.7438/lb.
Nickel dipped slightly in early trading, but staged an impressive rally starting in the pre-dawn hours to close at $8.3461/lb., up 21 ¼ cents. Zinc traded up and down all day, but ultimately ended up ¾ cents, at $0.8413/lb. Aluminum was down for most of the day, but rode a late rally to finish at $1.3279/lb., up ½ cents. Lead’s trading on the day was marked by large…
The base metals were mostly higher on Friday. Copper was down in the pre-dawn hours, but took off once New York trading began and pushed steadily higher, only retreating a little after noon to finish at $3.8731/lb., up 8 2/3 cents.
There are lots of reasons why a small company share can go up in price quickly. Usually it’s an innovative new product, a new market, or, in some cases, a sudden change in the market value of a good, product, or service.
In the beginning of the resource bull market, all commodities were created equal. They all rose together, with the exception of a few products like aluminium and rubber, which lagged the rest of the group. Now, things are different. Call it the great energy sorting.