Commodity prices have not been kind to investors, nor to those companies mining the commodities, since about the middle of 2012. With the potential for a bottom, now could be a great time to open a mining position for the long term. This could be especially true if a bottom in copper and gold prices is combined with an equalizing balance between supply and demand. According to Motley Fool analyst Taylor Muckerman, Freeport-McMoRan might be worth a glance.
As for natural gas producers, a lot of them struggled through 2012 due to the pricing collapse that caught many of them off guard. The low-cost producers were able to barely scrape by, so they should be worth a look now that the price of natural gas has climbed above $4 per million British thermal units. Motley Fool analyst Joel South happens to like Chesapeake Energy and Devon Energy in this space.
Diversification could be the key to unlocking Freeport's potential
After putting together a blockbuster deal to expand into the oil and natural gas industry, Freeport-McMoRan will have plenty on its plate as it tries to adapt to the new industry, as expanding into oil and gas carries plenty of inherent volatility. Freeport had a profitable copper business; on top of this foray into a new industry it still has to contend with mining industry bellwether BHP Billiton. To help investors determine if Freeport-McMoRan is a buy or a sell, The Motley Fool has compiled a premium research report on the company. Simply click here now to access your copy today.
The article Should Investors Be Getting Into Energy or Mining Right Now? originally appeared on Fool.com.
Joel South owns shares of Devon Energy. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool owns shares of Devon Energy and Freeport-McMoRan Copper & Gold and has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy, Long Jan 2014 $30 Calls on Chesapeake Energy, and Short Jan 2014 $15 Puts on Chesapeake Energy. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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