Iron Ore up 47% since Feb 2020
With all the hype on Gold prices breaking record highs, no one has been paying attention to the fact that Iron Ore prices are on a tear right now!! Having gone up just under 50% from as recently as 6 months ago. Here we will look at where Iron Ore is heading, and a great penny stock you can buy now in order to make money off of this.
Iron ore is ON A TEAR!! Trading at $115.55 for 62% Iron Ore, this is a resounding 47.52% increase in price since the beginning of February 2020. Did you miss out on all this while all the hype was on gold? Well Iron Ore has outperformed Gold as well. See for yourself:
Why will Iron Ore keep going up?
There are many reasons why Iron Ore will only go up. Here are 3:
- China has insatiable appetite. They are by far the largest Iron Ore importers in the world, and have not slowed down despite the pandemic. They also have a trade spat with Australia, which many probably missed. Despite this, the last thing they were going to touch was Iron Ore because of how valuable it is. They are now looking at alternatives to Australia because should the trade spat worsen (and it probably will). This gives them another stick, because so far they couldn’t use any trade war “tools” against Australia Iron Ore imports. That is how much they need it.
- Global economy has taken a hard punch in the mouth. This was a tough time for all of us, but together we all made it through. We’re not fully out of the woods yet, but we are close. Does this mean you stop trading penny stocks? Not at all. You find the best ones out there. Governments have been supporting those unfortunate enough to have lost their jobs and suffered as a result of Covid-19. However they can not do this indefinitely, especially when some people earn more from the free money vs their prior job. With programs in many countries formally ending, the focus has now shifted to infrastructure spending. That money printer must keep churning. This will only mean Iron Ore prices will go higher.
- The money printer is churning. Very simply put, there has been a ridiculous amount of money flooding the system in order to jump start the economy. Artificial as it is, it’s very clear that the money printer policy is not going away, having been around since the housing crisis of 2009. Do you care? Why yes you do. You do because inflation is taking place, and will accelerate. Iron ore prices will go up just like other commodities.
A very good Iron Ore penny stock
If you are looking for good Iron Ore penny stock ideas, we have an excellent one. We think the best Iron Ore penny stock is one that is cheap, high grade, and near production. For this reason the best Iron Ore penny stock we know of is Black Iron Inc (TSX:BKI). Here are 4 reasons why (although there are many more) Black Iron is the best Iron Ore penny stock to buy right now.
- Ultra-high grade deposit. Without going into the geological and technical details, the simplest explanation it is a much higher quality of Iron Ore when compared to what is typical. It has a grade of 68% pellet feed. Why does this matter? Because the price of Iron Ore we are seeing is for 62%. You can also get the price for 65% grade, but 68% trades at a premium. There are many reasons for this, not least of which is reduction in Green-house gases (GHG). Black Iron has this ultra-high grade deposit.
- Near production. The company is in very close proximity to production, having a Preliminary Economic Assessment (PEA), and most permits in place.
- The Ukrainian president endorsing Black Iron by name. “I am from Kryvyi Rih and this is an investment in my hometown.” ““It will be a very big cooperation. It is very important for Canada, for Black Iron, and it is important for us,” said Zelenskyy.”
- The stock is still very very cheap. This stock is worth over $6.27 at current prices and a high grade premium of $15 ($4.67 if there is $0 high grade premium). It is trading at a mere 15 ¢. That is a discount of OVER 4,000%!!!
Full report can be found here for those who want to dive deeper.