Matt Badiali is the current editor of Real Wealth Strategist a publication which is produced by Banyan Hill Publishing Company focuses on potential investment opportunities in the natural resources and commodities markets. Matt Badiali has over 20 years of experience investing in the natural resources industries and has been able to produce significant returns on his investments. He has been able to use the experience that he has as a trained scientist in order to disseminate which investments represent profitable opportunities in which investments do not. Read more about Matt Badiali at Talk Markets.
He has written about investment opportunities and just about every possible natural resource or commodity. However, recently he has posted about a unique investment opportunity within the metals sector of the economy. This metal is used on nearly a day-to-day basis. The metal in question is aluminum. Matt Badiali states that unlike other metals which are increasing in value recently due to issues and supply such as zinc and copper, aluminum does not have the same issues. In fact, aluminum is a relatively plentiful metal. The primary cost of aluminum is not sourcing the commodity but processing it.
The most common source of metal is in an ore referred to as bauxite. Bauxite is actually oxidized aluminum, or in other words aluminum rust. Aluminum has hit record lows in 2015 and was being sold at $.65 per pound. Over the last three years, the price has increased by 50%. In order to use the aluminum that is produced from bauxite, it must be heated to over 3500°F. This is even higher than the temperature that is used in the production of carbon steel and titanium. As the aluminum ore is melted, it undergoes the process of electrolysis in order to separate the pure metal from the oxygen. The process that is used is incredibly energy intensive and represents the largest cost in the production of aluminum.
Matt Badiali tells his readers that just recently news has been announced that one of the largest producers of aluminum in the world based out of China has decided to cut its capacity by 30%. As the law of supply and demand dictate, this should lead to an incredible increase in the price of aluminum around the world. Currently, the price of aluminum sits at $.97 per pound which is well below the last high price of $1.44 per pound that occurred in 2011. This represents an interesting investment opportunity for the investor who wishes to diversify their portfolio. Learn more about Matt on Inspirery.com.