The metals and mining sector is presenting opportunity this year, and analysts are eyeing this positive trend for investors in shares and exchange traded funds(ETFs).
An analyst with HSBC recently noted what he sees are the top opportunities in the metals and mining sector. The Wall Street Transcript says that the places to go this year will likely be bulk commodities, such as iron ore, coal, thermal coal and metallurgical. [Metal and Mining Sector’s Challenges.]
Coal presents an especially good opportunity, says the analyst. China is rapidly consumingcoal and iron ore, but they’re also two commodities in shortest supply. China’s demand is also such that coal can’t be produced quickly enough to cover it. [What Commodity ETFs Are All About.]
A similar rosy outlook for the platinum market is forecast, too. Last year, the group of six metals known as the platinum group metals (PGMs) outperformed gold and this year should bring more of the same, says Wong Eng Soon for the Business Times. A pickup in global auto demand, tight mine supply growth and more demand for investment are seen as being the primary drivers of any gains. [10 ETFs Advisors Like Most.]
For more stories about metals and mining, visit our metals and mining category.
- SPDR S&P Metals & Mining (NYSEArca: XME)