Wednesday, May 24, 2017

The Only Metal Trump Wants More Than Gold

If you’re looking for the tightest supply picture on the commodities scene, look no further than one base metal that is set for the biggest bull run of the decade. It’s essential to everything we build on this planet, yet we don’t have enough and the demand surge will be massive.

It’s not one of the metals that have just exited their super-cycle—like lithium or cobalt—behind the single-minded electric vehicle (EV) boom; this is the rock of ages. This is zinc.

It’s used in everything from oil and gas and power-generation, to military equipment, automotive and shipbuilding—and a million other things that we take for granted every day.

It started in 2016, but this year will be the ‘pinch point’ of zinc supply, with mine closures and production cuts outweighing new output, says Wood Mackenzie Analyst Jonathan Leng.

The downside is that stockpiles are at multi-year lows. Two major mines shut down last year, but demand remains relentless. The supply squeeze is on, and it’s painfully tight. China is going through record amounts of zinc, and America plans to spend billions on infrastructure and military defense build-ups mean that zinc—more than at any time in history—is the number one go-to metal.

Zinc will decide the fate of progress. It will define the economic future, and it will even shape the military capabilities of the world’s superpowers.

Already in 2016, zinc smelting demand outpaced mine production, and end use demand outpaced smelting production and mine production combined.

As you’ll see below, this is the beginning of the raging bull market.


During Zinc’s last cycle in 2005, the price surged when inventories dropped below critical levels–and that’s exactly where they’re headed now.

And right at the edge of this fantastic supply gap, is where new exploration enters the picture in a dramatic way—especially for investors eyeing a cheap and easy way into one of the most strategic metals on the planet.

Zinc One (TSX-V:Z; OTC:ZZZOF) just completed an acquisition in Peru that gives it one of the highest-grade zinc deposits in the world, with immediate exploration and future production potential.

Peru is one of the best mining countries in the world because its authorities understand the significance of the fact that half of its GDP comes from mining. It also has deposits with some of the highest zinc grades in the world.


Zinc One’s flagship Bongará project in Peru is remarkable. Not only does it boast exceptionally high-grade zinc, but it’s right on the surface and recently in production.

Essentially, we’re looking at an ambitious junior miner who has slipped quietly into one of the most promising zinc projects on the planet right when the supply squeeze has everyone wondering how we’re going to feed the military, industry and Asian urbanization.

- Source, Silver Doctors, Read More Here

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