Scarcity Creates Huge Buying Opportunity
These are the ones to load up on...
Do you remember where you were Monday, March 9,
That day was the bottom of the financial crisis.
The Dow Jones
Industrial Average dropped to its lowest level since 1997. Many investors
I know have thought a lot about that day, and the days around it -- a
time when the implosion of the world financial system still seemed like
a real possibility. And stocks were selling cheap.
Fortunes were made by those who had the steely nerves to buy during this
panic. You could pick up good companies at razor-thin multiples
to cash flow.
I remember gritting my teeth and buying a basket of gold exploration
stocks -- good companies that I just knew were selling way too cheap.
Their share prices had simply been driven along with other stocks
when the stock market plunged. I
picked up stocks like ATAC Resources and Riverside for pennies... and
sold them for gains of 200% and more.
I've also heard a lot of retrospective gripes along the lines of, "If
I'd only backed up the truck and bought more, I'd be a billionaire."
Easier said than done. Remember just how bleak and uncertain things
seemed at this time? Lehman had failed. GM was bankrupt. Bear Stearns
and Merrill Lynch survived only because of government-mediated fire
sales to larger banks.
Everything we thought we knew about the economy and the financial sector
seemed in doubt. The rug had been pulled out, and there was a sense that
anything could happen next.
The same was true in commodities. Oil plunged from nearly $150 per
barrel to less than $35 in six months. Copper approached $1.20 per pound
from a high of $4 six months earlier. Even gold -- supposedly a
"safe-haven" that investors could turn to in tumultuous times -- fell,
to $750 per ounce from nearly $1,000 two months prior.
The collapse was stunning and frightening. Many smart investors, people
who'd long been bullish on hard assets, suddenly questioned whether
commodities were finished as an investment. Perhaps the world no longer
needed metals and energy -- at least not to a degree that would bring
prices back to the lofty levels of previous years.
What strikes me today is how few people remember those feelings of utter
panic and uncertainty. Good times are back -- relatively speaking -- and
we give shorter and shorter shrift to the bad times behind.
Oil is back above $100, copper is over $3 (having fallen from over $4)
and gold investors are fretting because bullion is "only" $1,400.
Back in 2009, these prices would have sounded preposterous during the
depths of that crisis period.
Yes, here we are and most investors are missing the obvious. The
cycle is trending up, yet many investors consider commodities "risky" simply
because of the cyclical nature of metal and energy demand.
If history shows us nothing else, it comfinrs that buying furing the
down times is actually less risky -- and that holds true in
Put another way, the industry has a reputation for risk precisely
because history tells us that what has gone up will go down. But this
also implies that what has gone down will eventually go up. Thus, buying
commodities that are down comes with much reduced risk of further losses
-- and increased likelihood of profit.
The question we have to ask then is: what commodities are currently in a
By focusing our investments in such sectors, we can reduce our risk of
losses in the event of major financial problems -- industries that are
already beat up don't have as far to fall during a crash.
We'll also, ultimately, increase our chances for profit -- either before
or after the the calamity we are trying to insure against.
But before I tell you where I am investing to protect against any fall
from today's highs, let me introduce myself...
A Leading Voice In The Energy And Metals Industry
My name is Dave Forest, I am the Chief Stock Market
Strategist for Scarcity & Real Wealth, one of the
leading commodity newsletters in the country.
I'm a trained geologist with experience working in the mining and oil
and gas sectors for more than a decade. I've traveled as far as Russia,
Myanmar and Madagascar to inspect natural resource projects.
I have also been involved in a number of mining and oil company
ventures, including a position as chief operating officer for Condoto
Platinum, an Australian company with operations in Colombia, and as
director of Notela Resource Advisors, a natural resources advisory firm.
I previously managed the energy research division at Casey Research. I
have a degree in geology came from the University of Alberta.
While at Casey Research I helped investors find some of the best
commodity stocks of the decade...
In June 2005, I recommended Valkyries Petroleum, which was bought out
less than a year later by Lundin Petroleum for a 186% gain.
In March 2006, I recommended JNR Resources, which booked a 352% gain in
about a year.
And in November 2006 I booked a 95% gain in six months on Pitchstone
Now, I'm not showing you this just to pat myself on the back, I want you
to see the power of buying cheap commodity stocks. And now may be one of
the best times to be a commodity investor...
A Surprising Place To Invest Today
So where am I looking for beaten down commodity stocks? The answer
The sector is in a down period right now. The fall in
metals prices so far this year triggered a slide in the related mining
stocks that I think went too far.
The metal price fell about 35%
between October 2012 and July. But equities -- as measured by the PHLX
Gold/Silver Sector index (Nasdaq: XAU) -- plummeted nearly 60% during
the same period.
In my September issue of Scarcity & Real Wealth I make the case for
a gold miner who can pull the yellow metal out of the ground for cheaper
than most. And best of all itís be beaten up too much compared to the
fall in gold prices.
To get access to my research, simply
sign-up for a risk free offer at 60% discount today.
A Leading Commodity Newsletter
You see, we're in a new era. I call it the era of scarcity.
Around the world, literally billions of people are all fighting for the
same limited resources.
Once you burn a barrel of oil or a ton of coal, it's gone forever.
Demand keeps going up, and supplies keep shrinking, leading to steady
price increases for these expiring resources.
But that's not a reason to fear. It's an opportunity to profit.
In fact, many of the best-performing stocks in history have benefited
from scarcity...Royalty trust BP Prudhoe Bay (NYSE: BPT) has returned
more than 4,936% since it went public in 1989. That's all thanks to its
stake in prolific oil and gas fields.
And shares of Terra Nitrogen (NYSE: TNH), a fertilizer company that
profits when prices of commodities like corn rise, have returned more
than 4,000% in the past decade (and they pay a yield of more than 7%
These returns make sense if you think about it. It's so much easier to
profit when you're selling something the world needs... and there's not
enough to go around.
If you agree with anything I've said so far, then let me give you access
to the research I've done in
this field for
Scarcity & Real Wealth -- including my newest
research report, "6 Buffett Rules for Investing in Exploration and
This report reveals the best ways I've found to profit from the world's
increasing scarcity for resources.
All I ask is that you accept a no-risk subscription to my monthly
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Scarcity & Real Wealth is dedicated to the most lucrative investments in
the entire natural resources industry. In each issue I uncover and
analyze the stocks that I think can make you the most money... all
thanks to growing scarcity.
With your one-year subscription, you'll receive...
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6 Buffett Rules for Investing in Exploration and Development Companies
-- Discover six lessons on
identifying successful firms in the exploration business -- as
illustrated by some choice quotes from the Oracle of Omaha himself.
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So if you're interested in profiting from the growing scarcity we're
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Figures shown in the preceding presentation represent
returns for individual stocks only. All investments can be volatile, and
all returns will be reduced by fees and expenses.