Dwindling Supply and Rapidly Increasing Overseas Demand Make Zinc a Sound Investment, Says Global Partners Securities Analyst

Zinc certainly isn’t the sexiest of investment metals. It has neither the glamour of gold and silver nor the number of industrial applications of copper. But within the next three to five years, analysts at Global Partners Securities see zinc as the metal with the most upside potential.

Simply put, the supplies provided by existing zinc mines are dropping. While this may not be an immediately pressing concern, GPS’ head commodities analyst, Roger Caldwell believes that by the year 2015 demand will exceed supply by nearly sixty percent. The obvious impact of this will be a steep rise in the price of zinc, followed by calls to increase both the production of current mines as well as the excavation of new ones. “As currently operating mines continue to exhaust their resources, the plans for new excavations are below a level that can sustain existing demand, much less the higher levels of demand which are certain to result from a rising consumer class in China and the far east, which will be in a position to acquire luxury galvanized steel products,” explained Caldwell. “While we’ve seen an increasing demand for steel and copper in China, primarily driven by a boom in construction, zinc won’t be far behind as an increasing number of consumers are, or will soon be, in a position to purchase automobiles, electric washer/dryer combos and the like…all of which will require a steady supply of zinc.”

In light of what is sure to be a massive increase in China’s demand for the metal, one wonders if the domestic Chinese zinc industry will be able to rise to the occasion and supply its own demand. Caldwell thinks not, explaining that “The Chinese mining industry is both miniscule and woefully inefficient, compared to that of the major mining concerns. Even if, through Herculean effort, they were able to supply their own demand, current Chinese mining practices are so inefficient that extracting all of their needs domestically would be cost-prohibitive. It is overwhelmingly likely that China will be getting the bulk of its zinc from foreign suppliers. And with countries like Kazakhstan actively increasing their mining output, in the near to midterm there will be no shortage of mining concerns eager to supply China’s demand.”

That being the case, Caldwell has been advising his clients to invest in both zinc, and selected mining concerns for some time. “While we realize that the portion of your portfolio devoted to zinc may not have the ‘wow factor’ of strong positions in traditional safe-haven gold, we here at Global Partners Securities are confident in saying that this metal has a far better three to five year outlook than its sexier cousins.”

Global Partners Securities is a full service investment firm based in New York City. They offer a full range of financial services, including personal and corporate investment, retirement planning and financing for qualified entrepreneurs.

Global Partners Securities
1123 Broadway,
Suite 3002,
New York,
NY 10010, USA

Phone: 1-646-213-2846
Fax: 1-646-607-9244

This release was published on openPR.