{"id":30284,"date":"2012-06-17T14:41:20","date_gmt":"2012-06-17T18:41:20","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/2012\/06\/investing-in-tungsten-the-little-known-metal-thats-quietly-running-the-world\/"},"modified":"2012-06-17T14:41:20","modified_gmt":"2012-06-17T18:41:20","slug":"investing-in-tungsten-the-little-known-metal-thats-quietly-running-the-world","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2012\/06\/17\/investing-in-tungsten-the-little-known-metal-thats-quietly-running-the-world\/","title":{"rendered":"Investing in Tungsten: The Little-Known Metal That\u2019s Quietly Running the World"},"content":{"rendered":"

Article by Investment U<\/a> <\/p>\n

\"Investing<\/p>\n

A little-discussed metal called tungsten is set to become one of the most sought-after commodities on Wall Street.<\/p>\n<\/div>\n

At Investment U<\/em>, we\u2019re not in the business of showing people how to make a quick buck.<\/p>\n

Actually, I\u2019d say we\u2019re on the opposite end of the spectrum, as we relentlessly advise growing and protecting your wealth at a steady and safe rate. (For more see here<\/a>, here<\/a>, here<\/a>, here<\/a> and here<\/a>.)<\/p>\n

But that doesn\u2019t mean you shouldn\u2019t take advantage of a hot opportunity when you see one.<\/p>\n

In fact, a little-discussed metal called tungsten is set to become one of the most sought-after commodities on Wall Street.<\/p>\n

And a handful of junior mining stocks are poised to skyrocket as a result. This is because, as demand for tungsten is ramping higher around the world, supplies are dwindling even faster.<\/p>\n

Warren Buffet is Leading the Charge<\/strong><\/h2>\n

Now before we go any further, you should fully understand that junior mining stocks are risky investments.<\/p>\n

Legendary investor Doug Casey calls them \u201cthe most volatile stocks on earth.\u201d<\/p>\n

But where there\u2019s risk, there\u2019s also potential reward. And junior miners can return some of the biggest profits known to man.<\/p>\n

For example, since 2009, Detour Gold Corporation<\/strong> (TSX: DGC) has soared as much as 1,025%. And some companies, like ATAC Resources<\/strong> (TSX: ATC), have exploded well over 10,000% in the past.<\/p>\n

Junior miners that mine and process tungsten may very well find themselves in a similar situation today.<\/p>\n

And Warren Buffett agrees.<\/p>\n

In February, Woulfe Mining<\/strong> (TSX: WOF) inked a deal with International Metalworking Companies, a Berkshire Hathaway<\/strong> (NYSE: BRK-A) owned holding company for metalworking products.<\/p>\n

For a total of about $80 million, IMC agreed to buy a 25% stake in Woulfe\u2019s Sandong mining project in South Korea, which was once the biggest tungsten-producing mine worldwide. By early 2013, once again, the mine is set to become the biggest producer when it reopens.<\/p>\n

It\u2019s estimated Sandong will account for 7% to 10% of total tungsten production at that time.<\/p>\n

Buffett is seeing an enormous opportunity here.<\/p>\n

As Woulfe Mining\u2019s Nick Smith told Tungsten Investing News<\/em>, \u201cWithout tungsten, Western manufacturing comes to an end.\u201d<\/p>\n

Today the metal is used in anything from light bulbs, to drill bits for oil and gas exploration, to solar panels, to smartphones, tablets and much more.<\/p>\n

And what makes it unique is that it\u2019s practically immune from corrosion and can withstand unbelievably high temperatures.<\/p>\n

Nick Smith adds, \u201cYou are not working with steel without tungsten. There\u2019s no global mining unless you have tungsten-tipped drills.\u201d<\/p>\n

In other words, even though supply of tungsten is tightening worldwide, there\u2019s no material that can currently replace demand for it no matter how high prices go.<\/p>\n

China currently hoards 80% of the world\u2019s tungsten supply and expects to use all of it to support its own manufacturing industry.<\/p>\n

This leaves little options for any company that\u2019s dependent on tungsten for their own goods and services.<\/p>\n

How to Play the Trend<\/strong><\/h2>\n

While there\u2019s really no \u201csafe\u201d pure play on tungsten right now, there are a number of junior mining stocks that could skyrocket as supplies continue constricting.<\/p>\n

Among the top five I\u2019m interested in are Playfair Mining <\/strong>(TSX: PLV), Malaga Inc.<\/strong> (TSX: MLG), Woulfe Mining <\/strong>(TSX: WOF), Happy Creek Minerals<\/strong> (TSX: HPY), and Largo Resources<\/strong> (TSX: LGV).<\/p>\n

Just keep in mind, these companies are very small and subject to big price swings. So be sure to give your trailing stops enough room to handle a bumpy, yet potentially lucrative, ride.<\/p>\n

Good Investing,<\/p>\n

Mike Kapsch<\/p>\n

\n<\/a> <\/a> <\/a> <\/a> <\/a>\n<\/div>\n

<\/p>\n

Article by Investment U<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"

Article by Investment U A little-discussed metal called tungsten is set to become one of the most sought-after commodities on Wall Street. At Investment U, we\u2019re not in the business of showing people how to make a quick buck. Actually, I\u2019d say we\u2019re on the opposite end of the spectrum, as we relentlessly advise growing … <\/p>\n

Continue reading “Investing in Tungsten: The Little-Known Metal That\u2019s Quietly Running the World”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-30284","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/30284","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=30284"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/30284\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=30284"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=30284"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=30284"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}