Spend some time surfing these pages and you will find many ways to profit from metals and minerals in the upcoming year.
Nickel was the top performing commodity in 2006, climbing an extraordinary 159 per cent over the past year. Recent news that Australia’s Ravensthorpe mine will not come on stream until 2008, instead of second half 2007, and that Inco/CVRD’s Goro mine will be delayed until late 2008, has raised concern over supplies, in an environment of strong global demand growth. World stainless steel production advanced by 12 per cent in 2006, boosted by robust demand for oil drilling equipment, electric power expansion and booming aircraft orders. A ‘super-cycle’ is expected in nickel, with prices staying strong through 2008.
Uranium was the third-best performing commodity in 2006 and will likely be the top performer in 2007. “Uranium and zinc are our top ‘picks’ for investors in 2007, with precious metals, especially silver, also expected to benefit from further weakness in the U.S. dollar,” says Patricia Mohr, Vice-President and commodity market specialist, Scotia Economics. “Potash fertilizer should yield good gains for investors. Wheat, barley and canola should also perform quite well relative to past experience, linked to new demand for ethanol additives in gasoline and biodiesel, although metals & minerals are expected to retain their leadership position.”