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Should Investors Be Getting Into Energy or Mining Right Now?

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

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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 5.62%) 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 1.63%) in this space.

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Stocks Mentioned

Goldcorp Inc. Stock Quote
Goldcorp Inc.
GG
Freeport-McMoRan Inc. Stock Quote
Freeport-McMoRan Inc.
FCX
$38.35 (5.62%) $2.04
Chesapeake Energy Corporation Stock Quote
Chesapeake Energy Corporation
CHKA.Q
Barrick Gold Corporation Stock Quote
Barrick Gold Corporation
GOLD
$20.73 (-0.14%) $0.03
Devon Energy Corporation Stock Quote
Devon Energy Corporation
DVN
$71.06 (1.63%) $1.14

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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