You Must Be Long These Metals in 2018

You Must Be Long These Metals in 2018 by Matt Badiali – Banyan Hill

In 2017, the S&P 500 had a “perfect year,” in which it rose nearly 20%. It was the first year since 1990 that the S&P 500 rose 12 months in a row.

However, three unloved and overlooked metals beat that performance soundly.

Lead, zinc and copper all had outstanding years in 2017. They returned 26%, 30% and 30%, respectively.

However, most investors had zero exposure to the sector last year. The base metals space spent the five years from 2011 to 2015 in a brutal bear market…

…until 2016, when the sector began to show signs of life.

The base metals space spent the five years from 2011 to 2015 in a brutal bear market … until 2016, when the sector began to show signs of life.

As you can see, these metals are heading higher. In 2018, we should see them continue their uptrend.

The reason is simple: lack of supply.

Thanks to those five bad years, mining companies had to shut down mines all over the world. They stopped investing in expansion because they needed the cash to keep the lights on.

However, a mine is like a loaf of bread. There are only so many slices and then it’s gone.

The mining industry today is like a sandwich shop that stopped buying bread. We’re down to the last few loaves … and while more bread is coming, it won’t be here soon.

Three Base Metals

Lead and zinc prices should rise even further.

Continue Reading / Banyan Hill>>>

Sharing is caring!

Banyan Hill

Ted joined The Sovereign Society in 2013. As an expat who lived in South Africa for 25 years, Ted specializes in asset protection and international migration. He is the editor of The Bauman Letter and Plan B Club.