from the whole article, some interesting points which further prove that thor is in the right commodity, right time -
His words point to the worries which are driving global interest in tungsten – how to secure supplies of the metal in a market which is dominated by China.
Tungsten, a very dense grey metal also known as "wolfram", is best known to many as the filament used in conventional light bulbs. However, its extreme hardness, high melting point and other qualities mean it is in demand to produce drill bits, tough coatings and for other manufacturing uses.
Found only in mineral forms rather than as the pure metal, tungsten is mined around the world. But most of all it is mined in China, which holds about 60pc of the global reserves, provides about 85pc of the world's supplies, and is also the metal's biggest consumer.
That represents quite a headache for the West, because back in the 1980s and 1990s cheap Chinese exports of tungsten flooded the market and drove out many Western producers. At the same time, the end of the Cold War meant strategic Soviet stockpiles were sold off, dumping tonnes more of the metal on the market.
Not any more, though. Since 2005 China's appetite for tungsten and other raw materials to feed its runaway growth has seen Beijing clamp down on exports through duties and quotas.
With producers around the world struggling to meet demand, the price of ammonium paratungstate, the most commonly traded form of tungsten metal, rose 32pc last year to more than $440 a tonne, according to data from Metal Bulletin.
The European Commission has identified tungsten as "critical" raw material, which means Brussels considers there to be a risk of a supply shortage and a knock-on hit to the EU economy.
Politicians outside China are not keeping quiet about this situation. Last month the US, the EU and Japan lodged a complaint with the World Trade Organisation, claiming China is unfairly benefiting its own industries by monopolising global supply, via restrictions on the export of tungsten and other raw materials, such as rare earths.
The ultimate outcome could be that China faces sanctions, but no one is expecting a tide of tungsten to arrive on the market.
Mr Hale argues that governments would be better off putting the money paid to lawyers to argue on the international stage towards developing their own natural resources.
"The Chinese will listen to the WTO and will make all the right noises and it will take years [to resolve] - in which time businesses will have spent money on mines outside China," he says.
Sasha Cekerevac, co-editor for online financial newsletter Penny Stock Detectives, believes that China’s decision to limit the supply of the element tungsten in the world market will be a boon for the few tungsten stocks out there. In a recent Penny Stock Detectives article, Cekerevac argues that miners around the world that can now supply tungsten to the world will benefit greatly, as China supplied the world with roughly 85% of the supply of tungsten needed.
“When it comes to investing, tungsten stocks tend not to be mentioned in the same frequency as other junior mining companies,” notes Cekerevac. “Part of the reason is that investors aren’t aware of the variety of uses for tungsten. As the second-hardest substance after diamonds, tungsten’s industrial usage is increasing substantially, including for drilling and cutting purposes. There are some very interesting junior mining companies that are penny stocks involved with tungsten extraction.”
Cekerevac believes that Malaga Inc. is one of the more interesting tungsten stocks operating as one of several junior mining companies with intriguing future prospects. The company has properties in Peru with over 688 hectares in total area. Malaga recently raised its reserve and resource levels for its Pasto Bueno mine in Peru. This is always a good sign for junior mining companies, stresses Cekerevac. Considering there isn’t a ton of tungsten stocks publicly traded, any increase in reserves is always a positive.
Given the news on the increase in reserves, this pushed up the price of Malaga, as it would with any of the tungsten stocks had they announced such good news. With the move up in price, Cekerevac recommends waiting for a slight pullback, as a common occurrence with penny stocks in general is that, when they move up to the 200-day moving average, they will encounter resistance.
Cekerevac says that, while China is by far the biggest supplier of tungsten to the market, one advantage for an investor in tungsten stocks looking at Malaga is that it is based in Peru, a country that is favorable for junior mining companies. Malaga produces approximately 10% of the tungsten for sale outside of China and, with this recent increase in reserve estimates, this market share is poised to grow. The market now needs this tungsten since China has limited its supply to the world markets.
Investors in penny stocks shouldn’t avoid Tungsten alloy simply because there aren’t a lot of publicly traded companies available to invest in, insists Cekerevac. After a lot of research and due diligence, there are long-term possibilities for investors in tungsten stocks and other junior mining companies, as long as the investor understands the risks.
Published every business day, Penny Stock Detectives researches and analyzes low-priced opportunities in the stock market and individual stock market sectors. Penny Stock Detectives reports on penny stocks, small-cap stocks, micro-cap stocks, high-profit potential plays mostly under $10, and the stock market in general.
giddy up thor - right stock-right comodity-right time
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)