How to Prepare for the Storm Brewing in Copper

Tony Daltorio, The Investment U Research Team

There is a copper-red sky this morning – it reminds me that a serious “storm” is brewing for Copper.

Copper is one of the most important commodities in the world. It is a key component of the engine powering the vehicle called ‘global economic growth.’

The widely used reddish metal is a vitally important element in global industrial development. Much of the world’s infrastructure – construction, transportation, telecommunications, etc. – depends on copper.

Yet, copper is rarely mentioned on Wall Street. It is dismissed as “only” a commodity.

When copper is discussed, the full story is never told. At best, it is mentioned that copper demand has fallen in the United States because of the recession. Fair enough. But there is a lot more to the copper

Joe Kunkle, Investment U Research Team

With gold and oil hogging the “commodities spotlight,” silver is too often forgotten. However, a new trend is emerging that indicates a major rally may be starting in silver prices and silver related stocks.

Over the past few weeks we’ve seen more and more data that supports a rally in silver: from large institutional money making large bullish bets, to technical indicators of a breakout, fundamental valuations well below where they should be, and a possibility of a massive short squeeze.

The iShares Silver Trust ETF (NYSE: SLV) has gained 18% since the broader markets began to rally in early March, but we could easily see another 25% – or more – in the remainder of 2009.

All in all, they make silver a must-own in any diversified portfolio.

Here’s what the smart money is doing in silver right