So, inflation has been increasing, silver prices have been increasing, silver stocks have been increasing, but CDE is still going down. What gives? Shorts are still selling the stock and keeping it low. CDE is still very undervalued. It was undervalue at $5, so at the current price of $2.90, it is considered a bargain. As long as your time-frame is for at least one year, you will see a sizable gain in this stock.
Another mineral that might be worth investing in is aluminum. It’s cheaper to produce than steel and it has many of the qualities that are needed in the material. As steel prices rise, you will see more and more companies find substitutes for steel and aluminum will be the first choice to come to hand. To play this stock, you can go with the biggest aluminum producer, Alcoa (AA) or play with a new aluminum company from china, ACH. Both are undervalued and will go up as inflation continues to increase and the price of resources move up.
If you have been looking at James River Coal Company (JRCC), you would notice that the stock has gone from $3 to $60 within the year! That’s more than a twenty-fold increase within six months. I’d wish I knew there would be such a rush for coal. It’s odd because coal is very plentiful in the world. I would need to do more research to find out why the price has increased so much, but other than the price of oil dragging up the prices to transport coal, it’s not a resource that is hard to get. Silver, palladium, and platinum have a finite amount in this world and there price is justified to the supply.
Aluminum appears to be the next ‘coal stock’. I see it being the next super stock that will increase like coal to ridiculous levels. Although plentiful, it has the same supplies that can make it have that crazy increase. Here is a link on aluminum from Seeking Alpha: Aluminum Prices Are Expected to Soar 30%.
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