Many savvy investors who follow Banyan Hill’s articles know that Matt Badiali offers sound advice regarding natural resources. As someone who has worked on oil rigs, explored mines, owned oil wells and traveled to many parts of the world, Matt Badiali is considered an expert in agriculture, energy and mining. He uses his knowledge to make insightful predictions for which natural resource investments will be the most profitable. In a recent article that was published by Banyan Hill, Matt Badiali provided some suggestions for optimal investments in 2018.
Matt Badiali Reviews Base Metal Performances In 2017
Last year was a perfect year for the S&P with a rise of about 20 percent. That was the first year that the S&P increased for 12 consecutive months since 1990. Matt Badiali said that many people overlooked three unpopular but top-performing metals, which were copper, zinc and lead. These were the impressive returns for the metals in 2017:
- Copper returned 30 percent
- Zinc returned 30 percent
- Lead returned 26 percent
As Matt Badiali pointed out, many investors were not exposed to the base metal sector in 2017. This was partially because the sector was in a brutal bear market from 2011 until 2015. After 2016 arrived, the base metal sector started to come back to life. According to charts, each of those base metals moved upward in 2017, and they are expected to continue that trend through 2018.
Why Base Metals Are Moving Upward
Matt Badiali said that the reason for the perpetuation of the upward base metal trend is a lack of supply. When the sector went through its brutal bear market for several years, mining activities slowed down considerably. Many companies shut down completely, and those that remained in business did not put money into investing because the cash was needed to cover basic operating expenses.
In his article, Matt Badiali compared a mine to a loaf of bread. He said that the slices are limited, and the mining industry is like a sandwich company that is running out of bread and cannot buy more. When it comes to base metals, he said that the industry is down to its last few loaves. Although mining activities are being funded again, it takes time to see an increase in supply. His prediction is sound and is based on information that was gathered from multiple parts of the globe.
In the past, Badiali’s research took him to places such as Turkey, Haiti, Iraq, Papua New Guinea, Singapore, Switzerland and other places where natural resources are mined and refined. His natural curiosity and boldness in communication helped him gain extensive knowledge about how operations flow or why they are continued or halted in various regions. Badiali’s predictions are based on financial and economic analyses, individual company resource prospects and geological data.
Matt Badiali Makes Predictions For Base Metals In 2018
According to Badiali’s article, zinc and lead prices should increase steadily in 2018. Zinc performed better than copper and lead in 2016 by rising nearly 65 percent in a year. With the current state of supply and demand for zinc, perpetuation of increasing prices looks favorable. Matt Badiali referenced a prediction from the International Lead and Zinc Study Group. They predicted that the supply of zinc will decrease by 1.4 percent in 2018. However, they also said that demand would rise and may cause the price to reach $3,600 per ton. That averages out to about $1.64 per pound.
Matt Badiali said that the price of lead is predicted to reach $2,900 per metric ton in 2018, which is the same as $1.32 per pound. Industry experts said that the 2018 demand for lead exceeds the supply considerably. However, copper could wind up dominating the sector. Since it saw a supply disruption in China, copper hit a three-year high. Codelco is one of the world’s biggest copper producers, and the company predicted that copper would reach $4.55 per pound or $10,000 per metric ton in 2018. According to Matt, companies that mine copper will be ideal investment choices in 2018.
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Matt Badiali’s ending advice was to gain exposure to base metal miners and especially copper miners if investors had not yet been exposed to the base metal market. For these underappreciated metals, he said that 2018 may not only be a good year but a banner year in history. Matt Badiali enjoys talking about natural resources, trends and investments. One of his biggest passions is educating others. In addition to offering valuable published advice through Banyan Hill, Matt Badiali is a former professor of geology. He taught at the University of North Carolina and at Duke University. He left his profession of teaching when a renowned investing expert asked for his advice and help on a major project, and he became passionate about investing. Today, he combines both of those passions by researching investments and providing valuable advice to educate interested readers.