Precious metals aren't the only commodities heating up recently. Investors' appetite for base metals has returned with a vengeance on renewed hope that Chinese demand could drive prices even higher. Copper is trading near all-time highs, while zinc and iron are at multiyear highs.
Despite the inflationary effect that rising base metal prices can have on the products we buy, we can use these rising prices to help find potential investments that could beef up your portfolio. If you're considering allocating a portion of your portfolio to base metals, then you should consider these stocks.
Just because you can melt down a penny for more than it's currently worth doesn't mean you can legally do it. Instead, consider taking a position in Southern Copper
Cliffs Natural Resources
You might be wondering: Why Cliffs and not Vale
Zinc is most commonly applied in thin layers to iron and steel products to prevent rusting. As long as Chinese demand for iron and steel products remains strong, Horsehead Holding
Horsehead reported fourth-quarter results on Friday, which easily surpassed expectations. The company cited higher zinc prices and increased demand as the fuel behind its explosion in growth. Unlike considerably larger rival Teck Resources
What's your take on base metals? Do they deserve a spot in your portfolio, or are they due for a pullback? Share your thoughts in the comments section below and consider adding these stocks to My Watchlist.