It’s Time to Look at Mining Stocks
From 2011 to 2016, the World Mining Index lost over 75% of its value. It’s only just begun to claw its way back.
The recent 10% drop over a couple days has some investors looking for a new place to park their cash. Mining stocks might be the place.
That’s because the price of the underlying metals — copper, lead, zinc, nickel, platinum, palladium, etc. — led the collapse in the mining stocks.
Today those same metal prices are moving higher. Zinc just hit a 10-year high. The copper price is up 57% over the last two years.
That’s why mining companies are ripping higher. Investors looking for a high-growth sector outside of the S&P 500 should look hard at a basket of mining stocks.
Fortunately, there are a couple of simple ways to do this.
The iShares MSCI Global Metals & Mining Producers ETF (PICK) and the SPDR S&P Metals and Mining ETF (NYSE: XME) both track baskets of the world’s best mining companies.
If you are looking for a way to hedge slowing growth in the S&P 500, look to mining stocks.
Editor, Real Wealth Strategist