We want best of breed; not just any old mineral company will do, because in a bull market, they should make you the most money.  And there is less chance that a company that I call best of breed, is going to implode, which is what has happened historically to many mineral companies.

#1: BHP  (BHP BILLITON LIMITED)
So, when you think best of breed in minerals, the name that should pop into your head is bhp.  BHP is the 2nd largest producer of copper and 3rd largest of nickel in the world; they're the fourth in uranium, 5th in aluminum.

#2:  FCX  (FREEPORT MCMORAN B)
It's the lowest-cost copper producer in the world.  The reason for this is that most of the company's operations are in Indonesia, where labor and land are both pretty cheap.  The company is based in New Orleans, but that's not where most of their operations are, so you don't have to worry about any Katrina effect.  This company is going to be a big player in gold and copper production for years to come.  That's why I'm recommending them now as a long-term play in the bull market in minerals.


The Bottom Line:   BHP and FCX should benefit from higher prices in the commodities because of BRIC (increasing demand from Brazil, Russia, India and China) and because you want these stocks.

Just to recap: There is a major bull market for most raw materials and base metals because of BRIC.  All of these countries are rapidly growing; some of them are rapidly industrializing for the first time.  Maybe all of them will.