After its shares slipped below $32 for the first time since July 2013 this morning, BHP Billiton Limited (ASX: BHP) has managed to buck the market's trend downwards to now be trading 0.8% higher, representing a gain of 26 cents.
Although the S&P/ASX 200 (INDEXASX: XJO) has dropped 0.6% for the day, a 1.7% rise in the iron ore price overnight has helped prop the miner's shares up. With the commodity now trading for US$80.24 per tonne, Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG) have also jumped with the pair up 1.9% and 4.6% respectively.
Given how far BHP's shares have fallen in recent weeks – with the stock down 18% since the eve of its full-year results announcement in August – many investors are now wondering whether the shares have bottomed out and if now is the time to buy.
Indeed, BHP Billiton would be the safest way for investors to gain exposure to the sector. Although the majority of its earnings still come from the commodity, it has a much more diversified base than its rivals and it is planning on reducing operating costs by up to 25% over the coming years, indicating greater margins.
As it stands however, BHP Billiton could still be a dangerous play for your money right now. Volatility in the sector remains high and whatever rebound the iron ore price has experienced lately could well be only a temporary relief with many analysts predicting further falls. While I like BHP as a long-term prospect, I believe investors who remain patient could be given a far more attractive entry point in the coming weeks or months.
Until then, there are other great ways of gaining exposure to Australia's resources sector, and some investors are making loads of money already…
3 'under-the-radar' resources plays to buy today!
