Wednesday, October 26, 2016
My knuckles turned white as our car swerved around a truck pulling out of a hidden lane.
The truck driver and I made brief eye contact... I probably looked like a kidnap victim.
Most of the roads here on my trip to Ireland don't have shoulders. There is something uncanny about speeding along at the mercy of the driver, with houses flashing by a few feet from your window.
Despite what it sounds like, I wasn't in Ireland to film an action movie. For the past week, I've been touring the country in search of a way to profit from a quiet bull market...
I'm talking about zinc. You may not think much about the mineral, but as my colleague Brian Weepie wrote in July, it has a lot of everyday uses.
Adding zinc to steel or iron prevents rusting... Zinc oxide is used in paint... Brass is made by combining copper and zinc... And the U.S. penny is made mostly of zinc.
As you can see in the chart below, the price of zinc has rallied off its bottom in January...
Since it dropped to about $0.65 per pound in mid-January, zinc has climbed roughly 60% to more than $1 per pound today.
The rapid change in the price of zinc over the past nine months is due to a drop in supply.
While demand for zinc has grown slowly but consistently at about 2% per year, monthly zinc production fell to a nine-year low in February.
The world produces about 14 million tons of zinc per year... But about 1 million tons of zinc production left the market last year due to mine closures.
Mines like Brunswick (Canada), Lisheen (Ireland), and Century (Australia) all shut down. Another large producer, Red Dog Alaska, only has about 10 years of life remaining.
And it will take time to start new mines.
This year, the world will consume about 500,000 more tons of zinc than it will produce. Next year, the deficit will grow even larger. If it weren't for a giant backlog of supply – about 2 million tons in inventory worldwide – the price of zinc would be soaring even higher today.
By 2017, that inventory will get tight. The price of zinc has already started to move higher... We could see a full-blown frenzy by this time next year.
Stocks like Canadian base-metals producer Teck Resources (TCK) have already benefited... and will continue to move higher with the price of zinc. The company's shares are up nearly 675% since bottoming in mid-January.
Last week, Teck Resources announced it would acquire another zinc project in Australia. It believes this run is alive and well. I agree... But with the company's shares at their highest level since 2014, I'm looking for a cheaper way to play this bull market.
Here's a list of global zinc producers for you to consider...
I'm in Ireland researching another cheap opportunity in zinc right now. Ireland has the most zinc per square mile of any country in the world. And the company I'm visiting with – which I'll tell my Stansberry Research Resource Report subscribers about next Wednesday – may have more upside than any of the ones on the list above.
P.S. In the November issue of my Stansberry Research Resource Report, out next Wednesday, I'll share all of the details from my trip to Ireland, including everything about the company I've been researching. Make sure you're one of the first to hear about this opportunity with a risk-free trial subscription to the Stansberry Research Resource Report right here.
For people with a shorter investment time frame, Jeff Clark has found a metal that he says is "the best-looking trade setup in the market today." Get all the details right here.
Back in July, Brian Weepie told Growth Stock Wire readers about the "tremendous opportunity" in zinc. Read more on this stealthy bull market here: The Best Company to Own as This Bull Market Continues.
Semiconductor maker Nvidia continues its climb... up 115%-plus in 2016.
Oil-services giant Baker Hughes surges to a new 52-week high.
Video-game developer Activision Blizzard soars 60%-plus since mid-February.
Consumer-products firm Kimberly-Clark slides more than 15% from its early July high.