Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Eiro-group Review –The power of trading education - 4th Dec 20
Early Investors set to win big as FDA fast-tracks this ancient medicine - 3rd Dec 20
New PC System Switch On, Where's Windows 10 Licence Key? Overclockers UK OEM Review (5) - 3rd Dec 20
Poundland Budget Christmas Decorations Shopping 2020 to Beat the Corona Economic Depression - 3rd Dec 20
What is the right type of insurance for you, and how do you find it? - 3rd Dec 20
What Are the 3 Stocks That Will Benefit from Covid-19? - 3rd Dec 20
Gold & the USDX: Correlations - 2nd Dec 20
How An Ancient Medicine Is Taking On The $16 Trillion Pharmaceutical Industry - 2nd Dec 20
Amazon Black Friday vs Prime Day vs Cyber Monday, Which are Real or Fake Sales - 1st Dec 20
The No.1 Biotech Stock for 2021 - 1st Dec 20
Stocks Bears Last Chance Before Market Rally To SPX 4200 In 2021 - 1st Dec 20
Globalists Poised for a “Great Reset” – Any Role for Gold? - 1st Dec 20
How to Get FREE REAL Christmas Tree 2020! Easy DIY Money Saving - 1st Dec 20
The Truth About “6G” - 30th Nov 20
Ancient Aztec Secret Could Lead To A $6.9 Billion Biotech Breakthrough - 30th Nov 20
AMD Ryzen Zen 3 NO UK MSRP Stock - 5600x, 5800x, 5900x 5950x Selling at DOUBLE FAKE MSRP Prices - 29th Nov 20
Stock Market Short-term Decision Time - 29th Nov 20
Look at These 2 Big Warning Signs for the U.S. Economy - 29th Nov 20
Dow Stock Market Short-term and Long-term Trend Analysis - 28th Nov 20
How To Spot The End Of An Excess Market Trend Phase – Part II - 28th Nov 20
BLOCKCHAIN INVESTMENT PRIMER - 28th Nov 20
The Gold Stocks Correction is Maturing - 28th Nov 20
Biden and Yellen Pushed Gold Price Down to $1,800 - 28th Nov 20
Sheffield Christmas Lights 2020 - Peace Gardens vs 2019 and 2018 - 28th Nov 20
MUST WATCH Before You Waste Money on Buying A New PC Computer System - 27th Nov 20
Gold: Insurance for Prudent Investors, Precious Metals Reduce Risk & Preserve Wealth - 27th Nov 20
How To Spot The End Of An Excess Market Trend Phase - 27th Nov 20
Snow Falling Effect Christmas Lights Outdoor Projector Amazon Review - 27th Nov 20
4 Reasons Why You Shouldn't Put off Your Roof Repairs - 27th Nov 20
Further Clues Reveal Gold’s Weakness - 26th Nov 20
Fun Things to Do this Christmas - 26th Nov 20
Industries that Require Secure Messaging Apps - 26th Nov 20
Dow Stock Market Trend Analysis - 25th Nov 20
Amazon Black Friday Dell 32 Inch S3220DGF VA Curved Screen Gaming Monitor Bargain Deal! - 25th Nov 20
Biden the Silver Bull - 25th Nov 20
Inflation Warning to the Fed: Be Careful What You Wish For - 25th Nov 20
Financial Stocks Sector ETF Shows Unique Island Setup – What Next? - 25th Nov 20
Herd Immunity or Herd Insolvency: Which Will Affect Gold More? - 25th Nov 20
Stock Market SEASONAL TREND and ELECTION CYCLE - 24th Nov 20
Amazon Black Friday - Karcher K7 FC Pressure Washer Assembly and 1st Use - Is it Any Good? - 24th Nov 20
I Dislike Shallow People And Shallow Market Pullbacks - 24th Nov 20
Small Traders vs. Large Traders vs. Commercials: Who Is Right Most Often? - 24th Nov 20
10 Reasons You Should Trade With a Regulated Broker In UK - 24th Nov 20
Stock Market Elliott Wave Analysis - 23rd Nov 20
Evolution of the Fed - 23rd Nov 20
Gold and Silver Now and Then - A Comparison - 23rd Nov 20
Nasdaq NQ Has Stalled Above a 1.382 Fibonacci Expansion Range Three Times - 23rd Nov 20
Learn How To Trade Forex Successfully - 23rd Nov 20
Market 2020 vs 2016 and 2012 - 22nd Nov 20
Gold & Silver - Adapting Dynamic Learning Shows Possible Upside Price Rally - 22nd Nov 20
Stock Market Short-term Correction - 22nd Nov 20
Stock Market SPY/SPX Island Setups Warn Of A Potential Reversal In This Uptrend - 21st Nov 20
Why Budgies Make Great Pets for Kids - 21st Nov 20
How To Find The Best Dry Dog Food For Your Furry Best Friend?  - 21st Nov 20
The Key to a Successful LGBT Relationship is Matching by Preferences - 21st Nov 20
Stock Market Dow Long-term Trend Analysis - 20th Nov 20
Margin: How Stock Market Investors Are "Reaching for the Stars" - 20th Nov 20
World’s Largest Free-Trade Pact Inspiration for Global Economic Recovery - 20th Nov 20
Dating Sites Break all the Stereotypes About Distance - 20th Nov 20

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Rare Double-play Opportunity in Crude Oil, Gold and Commodities

Commodities / Resources Investing Aug 31, 2009 - 09:11 AM GMT

By: Money_and_Markets

Commodities

Best Financial Markets Analysis ArticleLarry Edelson writes: Truth be told, I’m even more bullish now on gold, oil and other natural resources than I was when I nailed the start of the massive bull market in commodities nine years ago, in the middle of the year 2000 — before gold prices tripled and before oil rocketed up some 1,030 percent from $13 per barrel to its all-time high of $147.


But despite what you might expect, I am not bullish merely because the Obama administration seems to be committed to lighting the fuse on massive inflation in 2010 and beyond.

True; even in more normal times you’d expect Washington’s mind-blowing $1.8 trillion annual deficits and its plans to sink us even deeper in debt with health care reform and countless other “borrow and spend” initiatives to be massively inflationary.

Record-shattering borrowing by the U.S. Treasury combined with manic money-printing by Bernanke and the Fed — would be a dead give-away that massive inflation and soaring resource prices was a virtual certainty.

I’d be enthusiastically bullish on gold, oil and other natural resources even if the dollar’s buying power wasn’t being gutted by our own government.

But there’s another factor that has convinced me that energy, metals, food, water and construction and manufacturing materials are destined to be among the most profitable investments in the world going forward:

The emergence of China, India and the Asian bloc as the new economic superpowers of the 21st century

It’s not particularly a new story. At least not for me. But this massive global transformation is now a reality. And even the quickest glance of recent facts on Asian economic growth prove it in spades …

  • While credit is still difficult to come by in the U.S., new loans made by China’s banks are exploding higher, more than TRIPLING in the first half of 2009.
  • Through July of this year, auto sales in China increased a record 30.7 percent to 5.4 million vehicles, just slightly below the U.S. at 5.8 million.
  • While U.S. retailers continue closing stores in droves, China’s retail sales in July are off the charts — up 15.2 percent since last year.
  • While the overall U.S. economy was shrinking at annual 3.3 percent pace in the first quarter of 2009, China’s GDP was growing at a pace of 6.1 percent.
  • While the U.S. economy was down 3.9 percent in the second quarter, China grew 7.9 percent. And get this:

Even if you accept Washington’s notoriously rosy estimates, the U.S. economy will not grow at all this year. More likely, it will continue to shrink, albeit at a somewhat slower pace than in the second half of last year.

By contrast, China’s economy is still growing by leaps and bounds — expanding at the breathtaking rate of 8 percent to 9 percent this year.

That’s about DOUBLE the economic growth the U.S. enjoys even in the GOOD times!

Demand explosion

These are crucial facts that have tremendous consequences for your investments. After all: Nearly one in four human beings alive on the planet today are Chinese. And while most of the world is still struggling through the worst recession since the 1930s, their economy is exploding.

And China’s not alone. India’s population is 1.1 billion strong — and its economy is still growing, too. In fact, it’s likely to grow 7 percent this year alone.

Think of it: Nearly one in every two human beings on Earth lives in one of these two countries — and they are growing their economies by leaps and bounds!

Now, think about this: Only about 10 percent of the Earth’s population live in Western Europe and the U.S. — and for the past 200 years or so, our nations drove the lions share of all economic growth on the entire planet.

It was largely OUR demand for gold, oil and other natural resources — growing demand from just 10 percent of the world’s population — that drove their prices ever-higher.

Today, demand for natural resources from the whopping 40 percent of the world’s population in China and India is colliding with our planet’s dwindling supply of natural resources.

That alone would make investment in natural resource stocks a no-brainer. But the fact is the growth in demand from these countries is not the routine, gradually rising demand you see in mature economies.

As I’ve just shown you, these two countries’ economies are positively exploding.

Together, since 2007, the emerging markets of China and India — along with a few other nations that supply them with natural resources — have been responsible for 50 percent of global economic growth.

Their citizens’ incomes are rising by leaps and bounds. More than 80 million new middle-class families are being created in Asia per year.   By 2015, just six short years from now, more than 800 million middle class families will live in these nations — 22 times more than now live in the U.S..

And every one of those new middle class families needs a place to live.  Every one of them wants to enjoy the necessities and little luxuries of Western life.

That means no matter what happens to Western economies, you can expect global demand for oil and gas … aluminum … copper … gold … silver … nickel … rice … sugar … cocoa … coffee … cotton … timber … cattle — you name it — to continue to explode.

And as demand for these things soar, their prices will, too.

That means the companies that produce them will post even greater earnings. And that means you can expect their stocks to shoot for the moon.

Bottom line: Natural resources are a dream “double-play” for investors today

Washington’s run-away deficits and money-printing virtually guarantee sky-high inflation and soaring resource prices as far as the eye can see. And the demand explosion in China and India also means you can expect the stock of companies that produce oil, gold and other resources to skyrocket.

It’s clear that neither of these mega-trends is likely to end soon. To the contrary: Every scrap of data I study tells me that they’re likely to accelerate throughout 2010 and beyond.

The great news is, the advent of exchange traded funds on China, India, natural resources — and on the countries that are getting rich selling resources to the world’s two largest nations — have made harnessing this global sea change as easy as buying shares of IBM and Microsoft.

For a report on these profit opportunities, be sure you haven’t missed the Weiss Global Forum’s full report. To view it, just click this link.

Sincerely,

Larry Edelson

This investment news is brought to you by Money and Markets . Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com .

Money and Markets Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules