The future of IRON

[Spreadsheet Ranger]

I have been concidering this for months now, what do you guys think is the future of Iron? Will the demand be there for the foreseeable future?

 

I am really concidering Kumba (JSE:KIO), but I first need to understand Iron and what it's place is in the future.

 

Look at there share price it's lower than 2008/9 levels surely it must be an attractive buy:

 

 

Iron Ore Price:

 

What do you guys think about Iron for the long hold?

 

Also what other influences is there to Kumba's share price other than the Iron price?

[Spreadsheet Ranger]

My thinking was that with India and the rest of Asia continuing to urbanize and industrialize surely there will be a demand and maybe even an increase in demand for decades to come?

[Purply]

I have been tracking iron ore for the past few months, it has seen one amazing recovery, one that unfortunately has starting falling in the past month or so and still seems to be going down.

 

I've read various articles, some suggesting that the rise is over and that it will fall back to January prices around $38, considering it was at $70 in April, mostly due to the slow down in China, plus oversupply (the usual reasons for anything going down lately)

 

KIO is extremely high risk, I have lost a ton, but have also gained considerably, just in trading though, no idea how this share will play out from an investors perspective.

 

I would suggest doing proper research before going in feet first with this one.

 

Bloomberg article here

 

http://www.bloomberg.com/news/articles/2016-06-07/citigroup-raises-iron-ore-outlook-as-china-demand-may-surprise

 

I don't read much into articles though, take it with a pinch of salt.

[Spreadsheet Ranger]

Thanks for that purply, I will keep an eye on this one. At this low level it is now, I am very interested.

[Purply]

Thanks for that purply, I will keep an eye on this one. At this low level it is now, I am very interested.

 

It does look very appealing currently, just not for short term trading though.

 

If I was patient enough, I'd drop a lump sum into KIO for 5 years no problem, but my currently goal is to grow my portfolio by minimum 20% per month.

[Spreadsheet Ranger]

20% per month is ideal, but that would require so much active management it simply won't be possible for me I do 2 - 4 trades a year at most