While gold may be a barbaric relic to the Oracle of Omaha, tungsten is apparently a shrewd buy. Resource Investor reports:
IMC International Metalworking, part of Buffett’s Berkshire Hathaway (NYSE: BRK.A, NYSE: BRK.B) empire, recently invested $80 million in a tungsten mining project in South Korea. The deal gives Buffett a 25% stake in what used to be the most productive tungsten mine on the planet.
Demand for tungsten is being driven higher by the proliferation of smart phones and tablets – tungsten is a critical component of these touch screens.
Unfortunately, short of buying a share in a tungsten mine, I see no easy way for an armchair investor to go long. Buying Berkshire would be just a bit of an overshoot, and the Market Vectors Rare Earth/Strategic Metals ETF (NYSEArca: REMX) cited towards the end of the article hasn’t done much except lose investors money.
REMX may be up there with GDXJ as a sucker’s metals bet.
Post Footer automatically generated by Add Post Footer Plugin for wordpress.