Matt Badiali Shares Why Zinc Is The Bull You Want To Ride
When it comes to investing, there are many options and a smart investor will diversify his holdings. One area is that of investing in natural resources and, as Matt Badiali shares, buying the right commodity at the right time can provide a steady stream of returns. Currently, Matt recommends one metal in particular. He describes why he believes this is the right time to buy zinc. Visit the website freedomchecks.com to learn more.
A Closer Look at the Value of Zinc
As Matt Badiali shares, natural resources on the markets go through cycles that can last several years. He uses zinc’s past by way of an example. In 2011, zinc established itself as a bear on the market and it remained that way for several years, before eventually taking a turn. This means that investing in these kinds of commodities requires a good amount of patience and may not be for the faint of heart.
Even those investors who try to be patient typically sell after just a couple of years. They grow frustrated or fear losing even more, as the prices continue to drop, and end up selling far too early. Referring back to that zinc bear market, that cycle lasted for five years.
So, when a natural resource enters a bull phase, investors must be ecstatic. Right? Think again. It becomes a highly stressful situation, especially on days when the price remains constant. If the price dips, even minimally, investors may panic and dump their shares too soon. They believe they’re avoiding a big loss by selling, but may later find out that the drop was just a temporary downturn. Follow Matt on Facebook.
Getting back to zinc, Matt reveals that the market is showing some impressive gains. At the start of 2016, zinc was selling at $0.66 per pound, but that price had risen to $1.45 per pound by the end of 2017. That shows a 120% gain in just under two years. Until 2011, when the market for zinc turned, impressive increases continued to raise the price of zinc. Overall, that cycle resulted in a total 533% increase. This is just the same type of condition Matt Badiali believes we’re seeing in the zinc market right now. Expecting a 500% gain or more would bring zinc up to $3.96 per pound.
About Matt Badiali
Matt is an authority in mining, agriculture, and energy. He attended Penn State University, where he earned a B.S. in earth sciences. Following graduation, Mr. Badiali continued his education at Florida Atlantic University, where he received a Masters degree in geology.
Before exploring his interests in the financial sector, Matt worked as a consultant for an environmental protection company. He also functioned as a geologist for a drilling company. Today, Matt Badiali writes for Banyan Hill, combining his love for geology with his passion for investing.