Modern Wall Street pays a lot of attention to technology stocks, but, no matter how much time people spend online or using computers, they still live in the real world. They still need food, energy, machines and electronic devices. That’s why Matt Badiali remains a dedicated expert in natural resources, energy, agricultural commodities and metals. He has spent the last several decades investigating and researching the opportunities available. That’s why Matt Badiali now edits the hard asset investing newsletter Real Wealth Strategist for Banyan Hill Publishing. He has visited mines and wells around the world. He interrogates CEOs to make sure every company he recommends to his readers are really great opportunities. He’s an experienced geologist, and also produces Front Line Profits. In that newsletter, he recommends small cap natural resource companies that are on the verge of exploding in price. Read more about Matt Badiali at Talk Markets.
Zinc is used in many different ways, from the nails that hold houses together to galvanizing steel and iron so they don’t rust. Also, modern American pennies are 98% zinc, not copper any longer. On average, every new car contains 38 pounds of zinc. It’s an essential nutrient, the second most common mineral in your body behind iron. Children need to eat it to grow properly. Adults need zinc for reproduction and sexual health.
Zinc is so important, from 2000 to 2016 the worldwide demand for zinc increased by 57%. The supply of zinc went up by nearly 50%. And that’s the crux of why the price is zinc is going to soar in the next few years, Matt Badiali says. The demand is rising higher than the supply, especially because the bear market in zinc from 2011 to 2016 drove many zinc mining companies to shut down many mines that could no longer be operated at a profit. Plus, many large zinc mines are nearing the end of their useful lives. And zinc miners have not been looking for new locations to mine. Learn more about Matt on Inspirery.com.
In 2016, demand for zinc exceeded production by 1.4 million metric tons. Yet by 2020 the world will need 15.7 million metric tons of zinc, but production is not nearly that high. This widening gap between production and demand has already driven the stock of Teck Resources, the best known zinc company in the United States. Matt Badiali recommends investors buy Hudbay Minerals because it’s smaller and has more potential to go up in price.