Stock Investing & Option Investing in Mining Sector | PowerOptions Web Log
Mining investments are looking attractive. For the last 6 months, this sector has been on the upswing. Iron, used extensively in steel production, isn’t as glamorous as gold, but its importance is critical. Gold is, of course, the standard, and will always be a good recession investment, but the bottom of that market may have passed. This may be a good time to consider the broad Mining Sector. A big milestone was passed early this year as Rio Tinto (RTP), a huge Australian-but-global mining conglomerate entered into a partnership with Chinalco, a Chinese diversified resources company. This, followed by their May 22nd announcement of reduced iron ore prices and a settlement with Nippon, Japan’s largest steelmaker, implies some major economic ripples. This will affect many major industries, and automakers come to mind first. Infrastructure construction is another main use of steel. The newly expanded production and exploration within China has...
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