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Zinc Mine Depletion to Move Zinc Prices Higher, According to Top Financial Site PennyStockDetectives
Zinc Mine Depletion to Move Zinc Prices Higher, According to Top Financial Site PennyStockDetectives
Danny Esposito, co-editor for Penny Stock Detectives, reports that zinc demand continues to rise significantly, with the greatest demand coming from most of the countries in Asia, especially China and India. Supply, however, is starting to decrease. As outlined in a recent Penny Stock Detectives article, Esposito believes that, by 2013-2014, three major zinc mines around the world are set to close, because they will have been completely depleted of their zinc. Mines in Ireland, Canada and Austra
New York,
New York,
United States of America
(prbd.net)
13/04/2012
Danny Esposito, co-editor for Penny Stock Detectives, reports that zinc demand continues to rise significantly, with the greatest demand coming from most of the countries in Asia, especially China and India. Supply, however, is starting to decrease. As outlined in a recent Penny Stock Detectives article, Esposito believes that, by 2013-2014, three major zinc mines around the world are set to close, because they will have been completely depleted of their zinc. Mines in Ireland, Canada and Australia that have supplied at least half a million tons of zinc will close over the next few years, meaning that zinc prices may rise, according to the editor.
“Today, 12 million tons of zinc is used worldwide,” comments Esposito. “Over half of zinc goes towards coating or galvanizing steel. Steel is easily corrodible and so, without a zinc coating on it, mankind would have to find another material to build our external structures, from buildings to bridges, with.”
The other important uses for zinc, notes Esposito, can be found in die casting, where the most common produced items could not survive without the anticorrosive properties of zinc; for example, faucets, coffee makers, door handles, tools, roofing material, and cutlery, just to name a few.
The price of zinc has remained relatively low over the last few years, says Esposito, because supply has been more than enough to meet demand, with a surplus available around the world. That trend may be about to change, according to the editor, as zinc investing could take center stage in the next few years.
As reported in Esposito’s article, in 1992, China accounted for just eight percent of zinc demand worldwide. In 2011, China accounted for 43% of zinc demand worldwide. Esposito says that this growing demand is evident for countries like India and other Asian nations as well, as they use zinc investing to build more bridges and homes for their expanding middle class.
Because of this, reports Esposito, zinc demand is expected to increase at least six percent over the next decade, while supply is expected to fall as mines close down. In the editor’s opinion, this means that, over the next few years, worldwide demand could exceed supply. In such a scenario, zinc prices would have to rise, which would continue to increase zinc investing and would benefit junior mining stocks, as they scramble with zinc investing to find the supply to meet the demand, says Esposito.
According to Esposito, this bullish setup means that now is the time to get into these junior mining stocks and so get into the possible zinc mania on the ground floor, before the market price of zinc starts to rise.
Published every business day, Penny Stock Detectives researches and analyzes low-priced opportunities in the stock market and individual stock market sectors. Penny Stock Detectives reports on penny stocks, small-cap stocks, micro-cap stocks, high-profit potential plays mostly under $10, and the stock market in general.
To see the full article and to learn more about Penny Stock Detectives, visit www.pennystockdetectives.com.
The editors of Penny Stock Detectives believe low-priced stocks, when researched properly, present investors with great opportunities to accumulate wealth and to increase the value of their investment portfolios. You can learn more about Penny Stock Detectives at www.pennystockdetectives.com.
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We publish Penny Stock Detectives to alert our readers to various low-priced opportunities in the stock market and individual stock market sectors. We report on penny stocks, small-cap stocks, micro-cap stocks, high-profit potential plays mostly under $10 and the stock market in general.
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