A perfectly timed opportunity and a deep-value contrarian speculation are setting up in the resource sector, says Lior Gantz, editor of Wealth Research Group.
There’s no doubt that zinc is currently the most attractive base metal investment out there—it’s almost a fairytale story. In fact, it will present the biggest opportunity in 2017.
The natural resource sector is based on the most fundamental economic equation, supply and demand, and zinc is following a classic pattern that is truly the quintessential formation of a once-in-a-generation bull market.
As resource legends begin to launch new companies in this industry, the window of opportunity will be opened for a few short months, and Wealth Research Group plans to help members capitalize.
As seen in the chart, 2016 is proving to be a year in which we will see a severe supply deficit, and it will carry on into 2017.
In 2016, zinc is the top-performing metal, and the reason is simple: stockpiles are ultra-low and two major mines have shut down.
China is the biggest driver of demand for zinc. It consumes close to 50% of the world’s supply. The astounding mega-projects coming include bridges that will connect hundreds of millions of people, the cities that will house 20M–50 million citizens, and the train system that aims to connect to Turkey—these require an unbelievable amount of zinc.
About 50% of all zinc is processed and applied as a coating to iron and steel to prevent rust.
The problem is that between 2008 and 2015, the bleak outlook for the global economy made zinc prices very cheap, and supply disappeared.
Zinc recently bottomed out at $0.66 per pound in December 2015, and it has rallied since then.
Here’s the key to understanding resource bull markets: current exploration funding and near-term new producers. That’s how an investor …read more