Stephan Bogner from Rockstone Research published an update on Zimtu Capital Corp (V:ZC).
After 1,200 trading days, or 5 years, commodities are booming again and are in a new bull market now for 5 months. Since mid-January, silver gained up to 32%, gold 22%, platinum 35%, palladium 33%, zinc 35%, copper 18%, lead 17%, nickel 16% and aluminum 15%.
WTI crude oil rallied up to 81% since mid-February, while natural gas appreciated by up to 43% since March. Although lithium is on the rise since a few years already, we are experiencing parabolic prices since the end of last year.
A popular method to profit from appreciating commodity prices is by investing in mining stocks. A rule of thumb says that when the gold price increases by 1%, the best gold stocks increase by more than 3%. In reality, the HUI gold mining index gained up to 138% since mid-January, hence 6 times as much as the gold price (the early phases of a bull market typically create strongest gains). The time seems ripe, especially for one company as it offers unmatched exposure to both exploration/discovery upside as well as increasing commodity prices.