Four years ago, I walked away from the gold and natural resource market entirely.
I exited all of my positions just eight weeks prior to the correction in gold prices beginning in October 2011.
I had been exclusively researching, writing about, and investing in the hard asset market since 2004 — a time when virtually no one was interested in natural resources, despite clear supply/demand imbalances.
But after seven years of investing in natural resources, I was ready to call it quits and lock in big wins for subscribers of my services and myself. So in August 2011, I walked away from hard asset investing altogether.
It was nearly the perfect time. Gold prices topped off at $1,900 just a month later and have come tumbling down since, now struggling for support above $1,100/oz.
But after watching gold and the natural resource market continue to suffer month after month, I’m gearing up to rebuild a brand new hard asset portfolio in order to leverage a future supply/demand imbalance that I believe could be key to a cyclical upswing in the hard asset market.
I’ll explain exactly what I mean in just a second. But for readers who have joined Energy and Capital within the past four years, please let me introduce myself. My name is Luke Burgess.
As I mentioned, I originally joined Angel Publishing back in 2004, screaming to investors about why they should also be entering the hard asset market.
Soon after, I began writing for a newsletter called Secret Stock Files, where I showed subscribers rapid triple-digit gains from a number of junior exploration and development natural resource plays. Later, I launched Gold World, where I focused more on education of the hard asset market.
But I’ve always sort of been on the outside of the whole “gold bug” mentality. I’m not a survivalist. I don’t have any conspiracy theories. I don’t have any ideology to push. I was always into gold and hard assets — and I’m getting back into them now — for profit, which is why I’m writing to you today…
I’ve just made an agreement with Angel Publishing to return to write for the Energy and Capital team because I believe there’s another cash-spewing opportunity in the natural resource market presenting itself to us right now. Here’s what I mean…
The Gold and Natural Resource Market Upside
Market instability has resulted in a serious lack of financing for new mineral development.
And the less money that goes into mineral exploration and development today, the less resources that will be available for quick recovery tomorrow.
The USGS reports the total estimated worldwide budget for nonferrous mineral exploration fell by 26% just last year. Compared to the height of the market, mineral exploration expenditure — most of which is gold exploration — has been cut in half.
Meanwhile, the demand for natural resources today (which only exist because of the exploration efforts of years past) remains strong and continues to grow.
Take oil, for instance…
Despite sharply decreasing prices over the past several months, quarterly demand for crude oil continues to increase and is projected to begin approaching 100 million barrels per day within the next 12 to 24 months.
Demand for other energies is also strong. Natural gas consumption has been steadily increasing year after year.
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On the metals side, the annual demand for gold has pulled back a bit since the height of the market. Yet despite the 2011 correction, annual gold demand has exceeded 4,000 tonnes annually.
Meanwhile, silver still enjoys solid investment and industrial demand, and base metals like copper are forecast to see much higher consumption over the next few years.
My point is that with the demand for natural resources relentlessly marching higher and the unavailability of new, mine-ready projects, we could see a rapid change in the supply/demand dynamic of the hard asset market and bank-busting opportunities for profits.
I will be in contact with you through Energy and Capital every Monday from here on out. And in each issue, we’ll explore various ways to play to the natural resource market to help you maximize your profits from this opportunity.
We are in a unique position right now to leverage a coming turnaround in gold and the overall natural resource cycle. I look forward to showing you high-yield returns once again.
Until then,
Luke Burgess
