From the Casey Daily Dispatch
Not sure if company is NSU, but zinc comments important:
Louis is very bullish on zinc right now.
Zinc is an industrial metal. It’s used in everything from auto bodies to suspension bridges.
This year, the price of zinc has surged more than 66%. It’s now trading at the highest level in nine years.
Normally, when you see a move like this, you’re late to the party. But Louis and his team think zinc could be headed much higher from here.
For one, zinc should get a huge boost from Trump’s “Make America Great Again” policies, especially if the next administration spends heavily on infrastructure.
Zinc is also in a serious supply crunch. Louis and his team wrote last month:
[Z]inc faced a shortage this year as one of the biggest Chinese producers, MMG, postponed the start of the new Dugald River mine until 2018. This happened just as demand rebounded in China, the biggest user. We estimate that global zinc output has declined by 1.4% while consumption has gone up by 3.5%. The International Lead and Zinc Study Group calculates that the world will need as much as 352,000 tonnes of zinc to balance the supply in 2016 (versus 152,000 projected earlier).
The combination of rising demand and shrinking supply should send zinc much higher. Unfortunately, there aren’t many “pure play” zinc producers, unless you buy a junior company. But that can be risky.
The other way to profit from rising zinc prices is to own a diversified miner. Yesterday, Louis recommend one such company that he says will do extremely well during the Trump years.
According to Louis, this company should “see huge profit increases going forward” and that should “translate into huge gains” for his readers. Plus, the business is already profitable, paying dividends, and is growing strongly.
You can learn all about this company by signing up for Casey Resource Investor today. And remember, we’ll give you a full 90 days to decide if it’s right for you. Click here to learn more.
