Extracting from resource deposits – whether mining gold and other precious metals like silver, or metals essential to the energy sector like lithium and uranium – is a fundamental wealth creation mechanism in any economy.
Let’s talk Real World Economics. Exploration and production, specifically in the small-cap sector, is where we separate the men from the boys and create the basis of all money.
One needs look no further than kitco.com to see that gold alone, as a commodity, is arguably the historically most stable long-term investment/wealth protection vehicle in existence, up some $250 this year alone (30-day gold is up $67.30).
In an unstable global economy (logistics), where the world’s reserve currency, the USD, is plagued by private/public sector debt and the lack of a robust manufacturing economy to pull it out of the skid, gold is and will be increasingly seen as a bedrock foundation investment globally.
Gold is able to weather the storm long-term, but how can you access this dynamic effectively?
Small-cap production and exploration firms afford a perfect pipeline for tapping into this surging trend as it evolves over the next few years and likely beyond.
The historical basis for gold and silver as being universally (even subconsciously) identifiable as money, combined with the advent/proliferation of modernized/innovative extraction technologies, has created a powerful wealth engine.
By strategically investing in small-caps which focus on employing upgraded efficiencies and growing through physical acquisition of productive assets with potential, investors can circuit up and through a troubled market via brilliant companies who know how to capitalize on this opportunity.
Lithium and uranium are two good examples of other well-positioned commodities where exploration/production firms in the small-cap sector stand to make big moves. Consider the prevalence and growing demand for portable intelligent devices, from laptops to cell phones, which require lithium batteries to operate, and evaluate the need for uranium in nuclear energy adoption in an emerging global economy which is energy hungry.
Let us hear your thoughts below: