As a senior editor at Banyan Hill Publishing, Matt Badiali uses his expertise in natural resources to let people know how to invest in natural resources such as precious metals. He has traveled the world to uncover opportunities such as going to Switzerland, Singapore, Papua New Guinea, and Iraq. He pours over geological data and asks chief executive officers the hard questions.
For 2018, Matt Badiali says that silver is the precious metal to invest in. In the first weeks of the year it was already up 10% and he expects this to continue. He said that the price of silver was up 15% in 2016 and only up 4% in 2017. He said that silver didn’t get a lot of attention in 2017 – he considers it “benign neglect” – but it will break out in 2018 as it comes back into vogue.
If you don’t have exposure to base metal miners yet, do it now. It looks like 2018 will be a banner year for unloved base metals.#Commodities #copper #zinc #lead #stocks #stockmarket #investing #banyanhillhttps://t.co/GJdVsqs8bT
— Matt Badiali (@Matt_B_Guru) January 5, 2018
There are three other commodities he thinks that investors should go long on for 2018. These are copper, zinc, and lead. He said that they respectively gained 30%, 30%, and 26% in 2017. The reason these gains will continue, he says, is that they have shrinking supplies. From 2011 to 2015 these metal were in a vicious bear market. Due to this, many of the companies that mine these commodities shut down operations. They also stopped investing in expansion, Matt Badiali says, which has now resulted in a limited supply. Follow Matt Badiali on Twitter
Matt Badiali says that the limited supply of copper, zinc, and lead won’t change for awhile. He compares mines to bread and says that once you run out of slices the loaf is gone. He goes on to compare mining to deli’s in that once they stop buying bread they’ll eventually run out. They can order more but it won’t arrive for awhile.
His analysis shows that zinc supply is going to drop 1.4% in 2018. He says demand, though, will go up for it. Lead, also, has dropping supply but large demand. The best one he thinks for 2018, though, is copper. The price of copper is expected to grow to $4.55 because of the dynamics at play. Due to this he thinks copper miners will shine in 2018 and be the best investment of the year.