thr very strong buy , page-35

http://www.pennystockdetectives.com/tungsten-investing



Saturday, March 17, 2012








Tungsten Investing


Tungsten investing deals with investments that focus on the chemical element tungsten. These represent mostly miners around the world, where the concentration of tungsten is high. The largest suppliers of tungsten in the world are China, Russia, Canada, Bolivia and Peru. Tungsten, unlike aluminum and copper, is not sold in the futures market and, therefore, there is no trading in the element itself in the markets. However, because tungsten is the second-hardest element known to man after diamonds and has the highest melting point of all non-alloyed metals, it is still a critical element in the production of many important goods like military weapons, mining equipment, construction compounds, and electrical machinery.

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China’s Need Is Investors’ Gain


Tungsten is a chemical element that was discovered 230 years ago by two Spanish scientists.

The most important property of this element is that it is the second-hardest substance, after diamonds, known to man. That is why tungsten investing is critical in creating military weapons, mining equipment, construction compounds, and electrical machinery.

Tungsten investing has led to the production of drill bits and large rock drills in general, metal-cutting tools, knives, circular saws, woodcutting tools, grenades, and missiles. Tungsten is reduced to a powder and mixed with other elements to create different grades of steel.

The other critical property of tungsten is that it has the highest melting point of all non-alloyed metals. This has translated to tungsten investing leading to its use in all manner of electrical conductors like electrical circuit boards, and in heating elements, welding applications, and fluorescent lighting.

The largest concentrations of tungsten are found in China, Russia, Canada and Bolivia.

The strange thing that occurred with tungsten investing was that, since about a decade ago, China has mined and sold tungsten on the open market for cheaper than other miners around the world could. This resulted in a dramatic fall in tungsten investing in other parts of the world, which led China to supply 83%-86% of the world’s demand over the last few years.

In a bizarre turn of events last year, China restricted the supply of exports to the world, sending prices skyrocketing. China deems tungsten a strategic element for the country that it simply cannot just give away. Tungsten investing is seen as important to the country, so it’s ensuring it has enough supply to meet future needs.

This has sent miners around the world scrambling to mine for tungsten and has jump-started new tungsten investing to restart old mines. However, restarting a mine can take years, while attempting to find new tungsten mines and begin extraction can take three to five years.

In the meantime, there will be a shortage of supply in 2012, as countries scramble to secure the metal due to China selling in only limited quantities. The rest of the miners in the world that do supply tungsten—some of which are Canadian—are racing to satisfy the suddenly rocketing demand.

Tungsten investing has ramped up in other parts of the world, which could lead to tremendous profits for those miners involved. The British Geological Survey noted that the scarcity of tungsten could be a problem in 2012.

Although there is a World Trade Organization case against China for its restriction of the supply of tungsten, don’t expect any changes for some time. A shortage of supply with increasing demand is the perfect recipe for higher profits for those miners focused on tungsten investing. With this backdrop, I believe investors should take a hard look at tungsten investing as well.