Should Investors Be Getting Into Energy or Mining Right Now?

By Taylor Muckerman and Joel South – Apr 8, 2013 at 9:32AM

NYSE: GG

Goldcorp

Miners have had a rough go of it lately and natural gas producers could be in for a nice ride. Is either industry primed for investment?

Commodity prices have not been kind to investors, nor to those companies mining the commodities, since about the middle of 2012. With the potential for a bottom, now could be a great time to open a mining position for the long term. This could be especially true if a bottom in copper and gold prices is combined with an equalizing balance between supply and demand. According to Motley Fool analyst Taylor Muckerman, Freeport-McMoRan (FCX 2.40%) might be worth a glance.

As for natural gas producers, a lot of them struggled through 2012 due to the pricing collapse that caught many of them off guard. The low-cost producers were able to barely scrape by, so they should be worth a look now that the price of natural gas has climbed above $4 per million British thermal units. Motley Fool analyst Joel South happens to like Chesapeake Energy (CHKA.Q) and Devon Energy (DVN 0.98%) in this space.

Joel South owns shares of Devon Energy. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool owns shares of Devon Energy and Freeport-McMoRan Copper & Gold and has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy, Long Jan 2014 $30 Calls on Chesapeake Energy, and Short Jan 2014 $15 Puts on Chesapeake Energy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.