The list of attractive investments is shrinking every month. However, there is one group that often offers investors excellent potential for long-term gains: natural resources & commodities, asserts Jim Powell, international investing expert and editor of Global Changes & Opportunities Report.

In fact, a new growth cycle for them is picking up speed. Raw material and commodity booms are particularly appealing because they usually last several years. The bottom line for investors is that the necessary conditions to support a new raw material and commodity cycle are in place — and the upturn has started.

If history is any guide, the new bull market will last several years and be very rewarding for investors. There are several groups of commodities and raw materials that have excellent outlooks for growth. Here are the main categories:

Copper

The case for copper’s investment potential is persuasive. Within a year, demand for the metal is projected to rise above its supply — and remain there for as far ahead as anyone can see.

The iPath Series B Bloomberg Copper Subindex Total Return ETN (JJC) tracks the price of copper. It does not invest in mining companies. In many inflationary cycles, copper outperforms precious metals — which makes it especially attractive.

Investors who would prefer a copper mining stock should consider Freeport McMoRan (FCX) — the leading producer that has good reserves. The company also extracts gold, silver, and other metals that are usually found with copper. FCX has operations in Arizona, New Mexico, Colorado, Peru, Chile, and Indonesia.

Aluminum

The iPath Series B Bloomberg Aluminum Subindex Total Return ETN (JJU) is also part of the iPath group of ETFs. There are advantages to investors from choosing different natural resource and commodity funds from the same organization.

There is a cross-pollination of ideas within the group that can be useful for each of them. Switching between the funds is also facilitated. I have been impressed with the iPath group that I am featuring in this report.

An alternative to investing in the iPath Aluminum ETF that tracks the price of the metal, is Alcoa (AA) the leading producer of the metal that we have had in our portfolio for several years. Alcoa is up 312.4% for us since December 2020 and should continue to appreciate as new uses are found for aluminum in technology.

Nickel

There are several base metal funds that follow the prices of lead, nickel, zinc, and a few others. However, the funds are usually small and thinly traded. Instead, I think investors should focus only on nickel — the most important of the base metals due to its use in high capacity batteries.

The best fund that tracks the price of nickel is the iPath Series B Bloomberg Nickel Subindex Total Return ETN (JJN). The fund is doing well and should continue to reward long-term investors.

Lithium

One of the most essential technology metals is lithium that is used in high capacity batteries in everything from smartphones to electric cars. Without an increasing supply of lithium, many of the advances in computing, energy, and communications would not exist.

Investors who would like to include a lithium stock in their technology metals portfolio should consider Sociedad Quimica y Minera de Chile S.A. (SQM). Although lithium is a common element that’s found globally, it is only concentrated enough in a few places to be mined profitably. One such location is in Chile, where SQM has several operations.

As renewable power continues to replace power from fossil fuels, I think the demand for lithium will continue to shoot up — and so should profits at SQM. In addition to producing lithium, SQM is an important producer of fertilizers, which makes the stock especially attractive now.

Uranium

Uranium is easy to overlook as a technology metal because it isn’t used in any of the products that are part of our daily lives. However, uranium fuels the nuclear power plants that generate 11% of the world’s electricity — and should be 15% by 2026. If there is a nuclear power renaissance — as many analysts expect — the demand for uranium should soar, and so should its price.

With uranium, I think investors should either take positions in Cameco (CCJ) — the leading North American miner and processor of the metal — or with the principal fund, Global X Uranium (URA). Because the uranium market can be volatile, I think the best way to invest is with the diversified Global X fund that tracks producers, processors, and leading users of uranium.

Rare Earth

In addition to mining companies that supply the leading technology metals, there are many lesser-known rare earth metals that are in high demand for semiconductors, specialty motors, advanced sensors, and several military products — to name only a few. The list includes cerium, germanium, neodymium, scandium, and 14 additional metals.

Some are tracked by ETFs. I don’t think investors should try to pick the winner with individual rare earth metals. Instead, I recommend the diversified VanEck Rare Earth/Strategic Metals ETF (REMX). This ETF tracks the stocks of companies throughout the world that deal with the materials. I think the VanEck fund will perform well in long-term technology metal portfolios.

Subscribe to Global Changes & Opportunities Report here…