What's Ahead for Metals
Many metals and mining stocks have already had a strong run. Here's the outlook for some key metals.
Aluminum
OUTLOOK: Still room for appreciation, as prices tend to rise later in a metals recovery. Will benefit from tight supply and strong demand from China.
POTENTIAL WINNERS: Alcoa Inc., Alcan Inc. and Century Aluminum Co.
Copper
OUTLOOK: Prices are expected to remain firm in the first half of 2005, although additional production could boost supply next year.
POTENTIAL WINNERS: Phelps Dodge Corp., Freeport-McMoRan Copper & Gold Inc.
Gold
OUTLOOK: Given its role as an inflation hedge and a store of value, the outlook for a return of inflation may benefit the precious metal, as will a weak dollar.
POTENTIAL WINNERS: Precious-metals mutual funds, such as American Century Global Gold, or an exchange-traded fund such as streetTracks Gold Shares.
Nickel
OUTLOOK: Although prices are likely to peak this year, demand should still continue to outstrip supply over the next year or two.
POTENTIAL WINNERS: Inco Ltd., Falconbridge Ltd., a unit of Noranda Inc. and FNX Mining Co.
Silver/Platinum/Palladium
OUTLOOK: New uses for silver will help bolster demand, while China needs platinum and palladium to develop clean-air technologies.
POTENTIAL WINNERS: Silver Wheaton Corp., a unit of Wheaton River Minerals Ltd., Pan American Silver Corp. and Anooraq Resources Corp.
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