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Sep
30
Jonathan Yates
Will the Australian Natural Resource Sector Soon Boom Again?
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There is no greater beneficiary of international trade around the world than the Australian natural resources sector.  That is especially true for Chinese economic production, as there is a huge demand for commodities around.  Economic growth in the United States and Europe also contributes to lifting prices of commodities around the world, too.  With China growing again along with other nations, companies operating in the natural resources sector in Australia such as BHP Billiton (NYSE: BHP), Wishbone Gold PLC (PINK: WISHY), Alumina (NYSE: AWC), and Interoil Corporation (NYSE: IOC) should all benefit.

Each will gain for different reasons, offering investors a vast array of choices.

BHP Billiton and Alumina will prosper from the massive Chinese need for industrial metals.  These include aluminum, iron ore, and copper, among many others.  By contrast, Wishbone Gold PLC will benefit from China being a major buyer of gold for investment purposes.  Both individual investors and the central bank in China buy large quantities of gold.  With its holdings in the Queensland Territory of Australia, Wishbone Gold PLC is positioned well to prosper from greater wealth in China.  Due to the huge Chinese demand for energy, Interoil Corporation should see its share price rise along with the demand for oil and natural gas from the People’s Republic of China.

Investors of all types have suitable choices in the Australian natural resources sector.

BHP Billiton is the world’s largest commodity company.  It pays a high dividend, too.  Wishbone Gold PLC is a small gold company that was just recommended by Beaufort Securities.  Interoil Corporation has been increasing due to the strong demand for oil, with its stock price up more than 30% for 2013.  Alumina is down, but should rise again with the Chinese demand for industrial metals.

 



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