Monday, October 3, 2016

Base metals are in rally mode


Mining shares climbed to the highest in 15 months as Chinese factory data added to signs of an improving economy in the top consumer of raw materials. Producers are set to benefit from increasing demand that has already pushed prices for industrial metals into a bull market.


The miners have had a total renaissance because of this uptick in metals and in iron ore and in coal," Jeremy Wrathall, head of global natural resources at Investec Plc, said in an interview with Bloomberg TV. "It’s fair to say that nobody really expected that to happen. It’s all about China. It’s the China stimulus that caused this rally."

Coking coal is a perfect example and we have profited nicely. I talked about Mongolian Mining Corp. last week and attached a email from Capitalist Exploits that outlined why it was going higher. I did not add it to the portfolio because it is a total speculation and is very risky. However I did put some funds into it. Here is another article about Mongolia  mining Corp. from Nick Cousyn who is the COO of BDSec the largest brokerage firm in Mongolia. 

I have to admit it is fun having a stock go up over 200% in less than a month. I believe it has a way to go and could easily double from here. I expect the GOM to move forward with  policies that will directly benefit this company. They most certainly should as many people in Parliament own shares themselves!

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