Streetwise Reports Examines Why the Commodity Supercycle Is Favoring Investors Right Now

Petaluma, California, UNITED STATES

SAN FRANCISCO, Nov. 28, 2017 (GLOBE NEWSWIRE) -- Precious, base and energy metals are all benefiting from the commodity supercycle, says Louis James, editor of International Speculator, who also discusses his Golden Runway theory of price appreciation and talks about a handful of companies that he believes are on the rise.

Included in this article is: Balmoral Resources Ltd. (TSX:BAR) (OTCQX:BALMF)

The Gold Report: Louis, would you talk about the commodity supercycle and where you see it at this point?

Louis James: The data continue to support the commodity supercycle hypothesis. It's long been known that commodities tend to move together as a group. There's a very high correlation between them. Even the precious metals, which are often thought of as different and not like pork bellies—their correlation with commodities in general is also very high.

Since the devastating bear market of 2011–2015 for resources in general, we did see a bottom carved out. That has not been revisited, and we are seeing resources, and metals in particular, curving back upward—two steps forward, one step back, but they are recovering. Even zinc, which was once so unloved, has become a top performer. Another one that's been lagging has been nickel, and that has started to come around as well lately. Copper has recently performed very well.

TGR: Where do you see the precious metals in this cycle at this point?

LJ: The supercycle argument is bullish for gold and silver, whether you're a goldbug or not, whether you see them as monetary metals as well as commodities or not. But, of course, they are safe haven assets as well.

The world is no less crazy than it was last month. Trump is over in China making nice and trying to soothe things over, but I don't think that will go very far with the Kim Jung-un in North Korea. We have a purge in Saudi Arabia doing who knows what in the Middle East, and plenty of other sources of disruption rocking the global economy.

We supposedly have a recovery going, with some rosy numbers reported and tech stars like Apple pulling things up. But we also have warning signs and a "recovery" without wage recovery. Without full participation in the labor force, I have to wonder how much of a real recovery that is. And companies can do a lot of things to report better earnings, but they're not sustainable, and I have to wonder how long the Wall Street rally can last.

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