All That Glitters Is Not ONLY Gold!
Gold, silver and precious metals mining stocks grab all the juicy headlines, but they’re not the only game in town.
Gold is up 17% so far in 2019, by far its best performance in years. Gold mining stocks have performed even better, up 31% this year.
But a different class of mining stocks is poised to steal the show, perhaps outshining even gold and gold miners. I’m talking about mining stocks that produce the not-so-precious metals: base metals including copper, steel, iron ore, aluminum and more.
The Nonprecious Metals Rally You Won’t Hear About
The diversified metals and mining sector got crushed last year, which has continued so far into 2019. Global economic growth has been slowing, thanks mainly to the trade war with China.
But now there’s a “first phase” agreement taking shape between President Trump and the Chinese, and I expect it to stick.
Because 2020 is an election year. And you can bet your bottom dollar Trump will pull out all the stops to win reelection.
And that means giving the economy and stock market a boost before next November.
Plus, with the Fed cutting interest rates and printing money again with another round of QE, you can bet we’ll soon see growth pick up. With it I expect higher inflation. That’s good news for precious metals stocks, but it’s especially bullish for the superundervalued nonprecious metal miners that could perform even better.
You see, not all mining stocks benefited from the rallies in gold and silver this year.
Base metals stocks got hammered due to slower growth and lower prices for everything from aluminum to zinc. Take a look…
But now these miners are about to catch up to the precious metal mining stocks in a very big way. How do I know?
Because we’ve seen it all happen before. Just look at the chart above.
The last big global growth scare was in 2015–16 and base metals stocks tumbled at first, but once the economy picked up steam again in 2016, they were off to the races.
These mining stocks soared an astonishing 178.7% over the next two years! Now it’s about to play out all over again. And here’s one way to play it on the cheap.
My best Nonprecious Metal Mining Stock Is…
Freeport-McMoRan Inc. (FCX) is the world’s largest copper mining company. It’s incredibly cyclical because its fortunes are tied to the price of copper, which rises and falls along with the strength or weakness of the global economy.
Well, guess what? Copper futures prices are already up nearly 8% from the low just over one month ago. I’m betting that uptrend continues and with it an upside breakout in FCX shares. Plus, the shares are trading under $10 a share right now and pay you a solid dividend yield of 2% while you wait for price appreciation.
Bottom line: All that glitters isn’t necessarily gold or precious metals stocks. If your timing is right, you can make a bundle of money with base metals mining stocks, too.
Here’s to growing your wealth,