Minor Metals: Stepping Up to the Majors

Before MetalMiner begins our short holiday hiatus, we would like to introduce contributing writer and associate editor Amy Edwards, who plans to write the occasional blurb and even in-depth features articles for MetalMiner. A graduate student at Northwestern University in Evanston, Ill., Amy looks forward to learning more about the metals industry and sharing that knowledge with MetalMiner readers. Feel free to contact Amy at aedwards (@) aptiumglobal (dot) com to suggest a future article topic.

Gold continues to make the news, as Lisa Reisman discussed this week in her post on selling gold jewelry to play the “price arbitrage” game. But many investors, as well as members of UK-registered JPMorgan Global Natural Resources Fund, are looking outside of the jewelry box and recommending that financiers pursue more minor metals, those lesser-known metals that still find their profits soaring. According to a recent Reuters article, Investors would do well to bet on firms with exposure to minor metals such as chrome and molybdenum as they are relatively cheap and demand is robust, a senior fund manager said on Wednesday. The article touts ferromanganese as one of the most potentially profitable metals, which is worthy of note after the recent announcement that ArcelorMittal plans to purchase OFZ, one of the leading ferro-alloys manufacturers in Central Europe. In addition to ferromanganese, chrome and molybdenum are also considered interesting in the Reuters article, according to Ian Henderson, manager of JPMorgan Global Natural Resources Fund. Many such commodities have not witnessed such a large run-up in prices, he adds, mentioning cobalt, tantalum and vanadium as other commodities that should develop a larger following.

These thoughts aren’t completely new, as Jack Lifton wrote last month in Resource Investor that minor metals are constantly developing as investment opportunities. His article offers a broad look at minor metals, and we would suggest a glance at the article for anyone hoping to study the opportunities some more. Minor metals, we’re beginning to see, may not belong in the minor league.”

–Amy Edwards

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