Some call it unsexy; others call it vital. The fact is zinc is needed in many places and can therefore also serve as an investment in a diversified portfolio.
The metal of the hour - a somewhat lofty title for zinc. Nevertheless, it does justice to the shiny silver industrial metal at the moment. No other of the common industrial and precious metals managed to achieve a double-digit price advance in the past four weeks. The zinc price, on the other hand, rose by a whopping 17 percent. Most of this came in the second week of October. Now the zinc price has reached its highest level in more than 14 years. What's behind this? After all, the ILZSG, the International Lead and Zinc Study Group, recently spoke of a supply surplus in the order of 217,000 tonnes in the current year. However, the price discovery does not exactly look like a surplus.
In fact, many processing companies are afraid that the zinc market could become scarce, and they are making a determined grab while they can still get hold of the material. However, this is the already refined, pure zinc that can be further processed. Because here it could actually become scarce. Because a big refinery conglomerate has announced to shut down its zinc production due to the high energy prices. The Nyrstar smelter in Budel in the Netherlands alone is said to produce 300,000 tonnes per year.
Looking at the situation in the longer term, the zinc price has been on an upward trend for more than a year. The inventories on the futures exchanges have also melted down in recent months. Thus, a temporary counter-reaction in the zinc price to the current bull market can be expected. The long-term trend, however, seems to continue upwards. Mining companies with promising zinc projects should also be able to profit from this in the medium term. Examples of this are Osisko Metals and Griffin Mining.
In China, the largest zinc producing country, Griffin Mining - https://www.youtube.com/watch?v=AXodgyUEKMc - produces zinc, gold, silver and lead at its Cijiaying mine.
Osisko Metals - https://www.youtube.com/watch?v=1abKFXCdN04 - also focuses on zinc and owns one of the most important zinc properties in Canada, the Pine Point project.
Current corporate information and press releases from Griffin Mining (- https://www.resource-capital.ch/en/companies/griffin-mining-ltd/ -) and Osisko Metals (- https://www.resource-capital.ch/en/companies/osisko-metals-inc/ -).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/
The metal of the hour - a somewhat lofty title for zinc. Nevertheless, it does justice to the shiny silver industrial metal at the moment. No other of the common industrial and precious metals managed to achieve a double-digit price advance in the past four weeks. The zinc price, on the other hand, rose by a whopping 17 percent. Most of this came in the second week of October. Now the zinc price has reached its highest level in more than 14 years. What's behind this? After all, the ILZSG, the International Lead and Zinc Study Group, recently spoke of a supply surplus in the order of 217,000 tonnes in the current year. However, the price discovery does not exactly look like a surplus.
In fact, many processing companies are afraid that the zinc market could become scarce, and they are making a determined grab while they can still get hold of the material. However, this is the already refined, pure zinc that can be further processed. Because here it could actually become scarce. Because a big refinery conglomerate has announced to shut down its zinc production due to the high energy prices. The Nyrstar smelter in Budel in the Netherlands alone is said to produce 300,000 tonnes per year.
Looking at the situation in the longer term, the zinc price has been on an upward trend for more than a year. The inventories on the futures exchanges have also melted down in recent months. Thus, a temporary counter-reaction in the zinc price to the current bull market can be expected. The long-term trend, however, seems to continue upwards. Mining companies with promising zinc projects should also be able to profit from this in the medium term. Examples of this are Osisko Metals and Griffin Mining.
In China, the largest zinc producing country, Griffin Mining - https://www.youtube.com/watch?v=AXodgyUEKMc - produces zinc, gold, silver and lead at its Cijiaying mine.
Osisko Metals - https://www.youtube.com/watch?v=1abKFXCdN04 - also focuses on zinc and owns one of the most important zinc properties in Canada, the Pine Point project.
Current corporate information and press releases from Griffin Mining (- https://www.resource-capital.ch/en/companies/griffin-mining-ltd/ -) and Osisko Metals (- https://www.resource-capital.ch/en/companies/osisko-metals-inc/ -).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/
