The Most Valuable Commodity on Earth

Jimmy Butts's picture

Friday, February 17, 2017 - 12:00am

by Jimmy Butts

"This could be one of our best shots at a triple-digit return in 2017."

This was what I said at the start of this month. And it remains true. Despite a recent hiccup in the stock price, I still believe a rebound in uranium prices will propel my pick in that space strongly higher this year.

If you can catch one commodity boom, it could literally be the most valuable commodity on earth. However, it's not always going to be a smooth ride... you must be willing to ride out some of the turbulence.

I recently shared a similar story developing in another major commodity with my premium Maximum Profit readers. It just so happens that it's also vitally important to President Trump's industrial revitalization plan. But it's not just President Trump's plans that are pushing the prices of this metal higher...


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On February 8, Copper prices continued their climb as workers at BHP Billiton's (NYSE: BHP) Escondida copper mine in Chile -- the world's single largest copper mine -- voted to strike. That strike started the following day. The kicker is that this particular mine accounts for roughly 5% of global copper output.

Analysts are worried that this strike could set the stage for strikes in other copper mines around the world, fueling concerns that we will have a copper shortage. This, of course, is pushing prices up.

This news comes on the heels of another major blow to the copper market. A month ago, the Indonesian government unexpectedly banned copper exports from the massive Grasberg mine run by Freeport-McMoRan (NYSE: FCX). This is the third-largest copper mine in the world. And according to Jefferies analyst Christopher LaFemina, this halt alone has removed more than 2% of global supply from the market.

So right now we have the world's first and third-largest copper mines essentially shut down to the rest of the world.

Copper prices had already been surging since last November's election. According to investment bank Goldman Sachs, these disruptions will likely add "fuel to the fire" and push copper into a supply shortage for the first time since 2011. The investment bank also expects copper prices to continue to soar higher from here.

As I mentioned earlier, copper follows a similar story line as the uranium play I talked about recently. Since 2011, the metal has fallen over 55%... but it seems the tide has shifted. The price is up roughly 24% in the last six months.

You can see the fall and rise in copper via the iPath Bloomberg Copper Subindex Total Return Fund (NYSE: JJC). This futures-based investment fund provides exposure to copper prices without having to deal with either the physical metal or the futures market itself.

copper stocks, commodities trading

As you can see JJC just broke out of a big downtrend, tested that breakout and then rallied to a new high. I believe this could be the start of a new bull market for copper. Investors who caught the last bull market starting in 2009 enjoyed gains in excess of 160% in only a few years.

Let me be clear about one thing, though: You could buy JJC and bet on the copper rebound, but you should know that this is not how we're playing the copper rebound in Maximum Profit. Instead, we're using the proven buy and sell signals of my proprietary momentum-based system to buy shares of one of the major copper miners directly.

By relying on our proven indicators, I think we stand a much better chance at doing well in what has notoriously been a volatile ground for investors. And our pick soared more than 250% during the previous boom period. (Like I said before, you only need to catch one commodity boom to see life-changing returns. But don't expect it to come without some turbulence.)

In fairness to my paid subscribers, I can't reveal the name of this company here. This could be one of the few chances we have to catch a commodity boom on the upswing -- and my subscribers pay StreetAuthority good money for this kind of information. That said, if you'd like to know the name of my pick along with others I've recommended to my Maximum Profit subscribers recently, I invite you to go here.

Jimmy Butts does not personally hold positions in any securities mentioned in this article.
StreetAuthority LLC does not hold positions in any securities mentioned in this article.