Somewhere along the road, America forgot how to make things. Finance became our national product. But things are about to change, says Chris Mayer. As the global banking system cracks, investors will return to the simple, tangible things that we need. And this will create some stunning profit opportunities for those who move quickly.
We’re deep into bear market territory right now… aren’t we? Frank Hemsley isn’t so sure. He says commodities are actually still in a long-term secular bull market. The current slump is just a temporary correction of prices that ran away in the last year. Frank says commodities will soon continue their bull run, breaking through new highs in the process.
The base metals were all well into positive territory on Monday. Copper rose from the pre-dawn hours straight through the day, finishing at its intraday high of $2.3724/lb., up better than 18 cents from Friday.
The base metals were all bathing in blood on Friday. Copper had a stunningly dismal day, falling in the pre-dawn hours, then seeing every rally in the New York market squashed, and finally just coming off its intraday low late to finish at $2.1916/lb., down 27¾ cents.
Commodity prices have been among the hardest hit by the wave of market panic. This has dragged down the stock of International Royalty Corp. (AMEX:ROY), which owns a portfolio of royalties from 80 mines around the world. Chris Mayer says this presents a great buying opportunity for investors. The company is not exposed to rising mining costs, yet it receives a slice of every ounce of metal that it pulled out. Chris says it’s “like a big bucket of call options…that don’t expire.”
The base metals were all in positive territory on Friday. Copper spiked sharply higher during the pre-dawn hours, dropped off a little after the New York open, then traded dead flat through the day, finishing at $3.2086/lb., up 11 2/3 cents.
Little-known metal molybdenum is essential to a host of fast-growing industries from energy to construction. Companies can’t open mines fast enough. Demand has sent the price soaring 1,000% in the last five years. Jim Nelson says this is still just the beginning for the metal. He expects another surge in the next 12 months.
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…
The base metals were all solidly in positive territory on Friday. Copper rose from the pre-dawn hours straight through to mid-morning, peaking at $3.27, then tailed off but still finished with a big gain at $3.2379/lb., up nearly 8½ cents.