Something big is brewing.

The potential gains range between 100% and 300%.

Yet most investors are never going to hear about it until the real opportunity is already gone.

Gold may be grabbing a lot of headlines (and justifiably so). But another metal is just starting to turn up and has a lot more room to run.

Better Than Gold

Gold is everywhere.

The yellow metal’s 30%+ rise this year has sparked a new gold rush of sorts.

Tens of billions of dollars are flowing into gold ETF’s and even more into the gold mining stocks.

The thing is though, gold fared relatively well over the last few years.

Yes, it fell more than 40% from its $1900+ highs from five years ago. But gold actually held up far better than the prices of most commodities.

Take iron ore.

It only has one real use in making steel.

Naturally, it has had tough run over the last few years as China and other developing nations’ economies declined and their building booms fizzled.

As a result, the price of a metric ton of iron ore has fallen from $187 in 2011 down to a low of $41 earlier this year.

That’s a 79% drop from peak to trough.

It was bad.

That’s the kind of price drop leading to mine closures and marginal producers getting wiped out.

It’s also necessary for a new bull run to begin.

Iron Ore: Rising From The Ashes?

In the last eight months Iron ore prices have risen more than 40% to about $56 per metric ton.

That’s the second biggest run since the iron ore bull market began over a decade ago.

And now, those iron ore miners which were crushed in the downturn are catching back up fast.

Leading the way is one of the few pure-play iron ore miners out there.

Vale S.A. (VALE), the Brazilian $29 billion iron ore mining king, has had it’s shares run up 164% so far this year.

That’s nearly quadruple the run-up in iron ore prices.

Now, here’s the thing that make iron ore a bit different than gold and other metals which are getting so much attention.

Iron ore prices may be up big, but historically, they’re still cheap.

As I write, iron ore prices are still down 70% from their past highs which leaves a lot of room to run.

It’s simple math, really.

If iron ore prices rise another 60% from here, they still only be half what they were in 2011.

I’m not about to tell you the world is about to go on a renewed construction boom like the one that sent all commodities soaring before the credit crisis.

Frankly, there’s no reason to expect that.

However, if the recovery does continue and steel demand ticks up a bit more, iron ore prices can and will go significantly higher and iron ore mining stocks will run even faster.

If you like cheap stocks and contrarian investment ideas, this is one place you should be looking.

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