North American Palladium Ltd (USA) (PAL), Molycorp Inc (MCP) – Precious Metals: A New Gold Rush?

With $220 million in cash, Molycorp Inc (NYSE:MCP) is free to develop existing global facilities in USA, Japan, and Europe.

Iron

Another element worth its weight in gold for investors is humble iron. When imbued with carbon, iron becomes more rigid without becoming brittle, transforming into what we know as steel. In 2011 the United States produced 86 megatons of steel, or 86 million tons. Steel is widely used in construction of bridges and buildings, among other things. However all that iron has to come from somewhere, and one such source of iron in North America is Cliffs Natural Resources Inc (NYSE:CLF), which supplies iron ore to steel producers. This steel is quickly shipped and used for its various purposes. With first and second quarter 2013 revenues above $1 billion, decreases of SG&A and Exploration expenses by 44% in the second quarter, and putting $110 million toward reducing dept, Cliffs Natural Resources Inc (NYSE:CLF) has set a good pace for 2013 that seems likely to continue.

Foolish conclusion

While gold and silver are having trouble holding their values, there are other minerals that hold value well due to a wide variety of uses. And because these elements are becoming more useful, sharing in companies producing elements such as iron, neodymium, or dysprosium is likely to benefit Foolish investors in the long run.

Thomas Pangia has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Thomas is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Precious Metals: A New Gold Rush? originally appeared on Fool.com is written by Thomas Pangia.

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