Scarcity Creates Huge Buying Opportunity

in Commodities

These are the ones to load up on...

Do you remember where you were Monday, March 9, 2009?

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 commodities too.

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 down period?

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 Exploration.

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 is gold.

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 it's 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% right now).

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 Development Companies."

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 newsletter -- Scarcity & Real Wealth.

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.

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Instant Access to Scarcity & Real Wealth's $100,000 Portfolio -- To track my results, I add my favorite securities to my real-money Scarcity & Real Wealth portfolio. I actually buy and sell my picks in a real brokerage account. This way you'll see exactly how my picks are doing with zero B.S. I also give you 48 hours advance notice before I buy or sell any security -- giving you time to beat me to the punch.
The StreetAuthority Insider -- a twice-weekly advisory available exclusively to paid subscribers.
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.

Scarcity & Real Wealth normally costs $198 for one full year. But through this special offer I can give you an even better deal.

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But there's no guarantee this advisory will be for you. So for the next 30 days, you can take the time you need to decide if this research is what you're looking for. If not, simply contact our customer service team for a 100% refund (the phone number is located at the bottom of every issue). You'll keep the reports free of charge.

So if you're interested in profiting from the growing scarcity we're seeing in nearly every resource on the planet, there's never been a better time to try Scarcity & Real Wealth.

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(C) Copyright 2012 StreetAuthority, LLC. LEGAL DISCLAIMER: Please note that we are not a registered investment firm or broker/dealer. Readers are advised that the material contained herein should be used solely for informational purposes.

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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.