MRO Magazine

OptionRally to Release Their Annual Metals Analysis

December 22, 2015
By Business Wire News


OptionRally is expected to release its annual expectations for the Metals sector for 2016 to its investors in the coming month. The report presents a negative outlook for metals prices, suggesting that investors should go short on metals at this stage.

“Despite the steep plunge in metals prices in the past few years, economic and supply/demand factors are expected to continue down for metals prices,” states Saul Goodman, Senior Broker at OptionRally and one of the report’s writers.

“China created the world’s largest demand for the metals and is at the beginning of an enormous economic slowdown. This will create a chain reaction in the Chinese market where resource consumption, (iron ore, gold, silver, copper, platinum, palladium) will fall precipitously while the mining houses will take years to trim their outputs accordingly. The time that they continue to produce metals for which demand is falling until they finally do trim production to come into line with demand will see continued falls in prices in the metals sector,” explains Goodman.

According to Goodman, metals have been dropping in a rare super-cycle type decline presenting a rare entry point for a selling play. The last time metals reached this price level was November, 2008. Goodman is of the opinion that once traders seize the severity currently contracting global economic activity, as well as the growing presence of terrorism exported from the Middle East, the demand for the Metals will continue to fall with palladium possibly reaching its pre Great Recession price of $400 from its current $549.”

Specializing in the Commodity Sector, Goodman has vast experience in providing advanced portfolio management services to worldwide investors.

*This item has been prepared solely for information purposes, and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy.

OptionRally VIP
Carol Preston
Head of Public Relations