These Resource Sectors Will Soar in 2017 - Zinc and Uranium

Mining & Minerals - Evaluations / Other Metals

Lior Gantz reports that the natural resource sector is based on the most fundamental economic equation, supply and demand, and zinc is following a classic pattern that is truly the quintessential formation of a once-in-a-generation bull market. As resource legends begin to launch new companies in the zinc industry, the window of opportunity will be opened for a few short months. 2016 is proving to be a year in which we will see a severe zinc supply deficit, and it will carry on into 2017. In 2016, zinc is the top-performing metal, and the reason is simple: stockpiles are ultra-low and two major mines have shut down. China is the biggest driver of demand for zinc. It consumes close to 50% of the world supply.

The mega-projects coming include bridges that will connect hundreds of millions of people, the cities that will house 20 to 50 million citizens, and the train system that aims to connect to Turkey, all these require large amounts of zinc. About 50% of all zinc is processed and applied as a coating to iron and steel to prevent rust. The problem is that between 2008 and 2015, the bleak outlook for the global economy made zinc prices very cheap, and supply disappeared. Zinc recently bottomed out at $0.66 per pound in December 2015, and it has rallied since then.