I'd Rather Talk About Gold
- Did you buy it when I called it?
- News I can’t wait to hear
- The 7.7% dividend in natural gas
First I want to thank Gary S. for writing in with some humorous advice care of golf legend Sam Snead:
“A woman once asked Sam Snead if he could give her a quick lesson. After watching her hit a dozen or so balls at the range, she asked, "So what do you think"?
His response, "I think you should take two weeks off ..... then quit".”
If you have any more tips on how to fix my slice, or any questions about commodities, please drop me a line at editorial@resourceprospector.com.
And while I could enthrall you with more war stories about my horrific golf game, I have to admit I’d rather talk about gold on this snowy day here in Vermont.
If you don’t yet own gold it’s not too late. As soon as possible, buy gold, whether it’s bullion, stocks or the State Street SPDR Gold ETF (NYSE: GLD) if you must.
Gold’s run is by no means over, and I can list dozens if not hundreds of reasons why gold should be a part of your portfolio – the biggest reason being that gold is the best way to insure against the planet-wide epidemic of weakening currencies.
Gold is exciting. It’s sexy. Gold’s stocks especially are fun to watch and study closely. Drilling results, assays and ore mineralization might sound boring to you, but trust me, it’s exciting to own a stock ahead of major findings.
So I could talk about gold all day, but right now another commodity in a less-exciting sector is bouncing off its lows. It’s an energy commodity that we have a lot of in North America – enough to last 100 years by some estimates. It’s cleaner than gasoline and coal, and it can be used as fuel in power plants as well as automobiles. And right now, I believe the trend has the potential to be at least as profitable as the bull market in gold.
I’m talking about natural gas – and I’ve been pounding the table for natural gas for the past month. In my April 1st issue of the Resource Prospector, I said,
“…buying stock natural gas companies is a long-term play. But even in the shorter-term, natural gas prices should rise. Could it go lower? Sure. But not much lower. I’m not timing the market – I’m buying because natural gas is cheap.
And today, you can buy natural gas companies for extremely cheap. I’m talking cheaper than you’ll likely ever see them again.
At today’s prices, you’re locking in the upside of the inevitability that the U.S. and eventually the whole world will have to find another fuel source for personal and commercial vehicles.”
I was a couple days late in calling the bottom.
Right now, I’m bullish on natural gas for a couple of reasons – it’s cheap, plentiful and as green as fossil fuels get. We’ll use more, not less natural gas in the future because we’re running out of easy-to-get crude oil. Natural gas prices would have to sextuple to reach the equivalent cost of gasoline today.
Those are long-term bullish factors for natural gas – and they’re well and good. But in the meantime, there’s some news coming out on Friday that I believe will give natural gas a more immediate boost.
I talked about this news at length in last Friday’s issue of the Resource Prospector, which you can read by clicking here.
In short, the Energy Information Agency (EIA) is releasing a new report on natural gas supply in the United States. This report will use new methods to estimate supply, and there’s reason to believe that these new methods will more accurately report that we have less immediate supply than was previously estimated.
That will push natural gas prices higher. As I noted on Friday, I’m not the only one saying so. Henry Groppe, a Texas oil man with 50 years in the business believes natural gas prices could rise by 100% - a double – by the end of the summer.
To capitalize on this trend, I advise that you buy shares of natural gas companies before the EIA releases their report on Friday. I’m most excited about a small American natural gas company that’s preparing to pay a 7.7% dividend in early May. Ian Wyatt has prepared a full report about this company that he’ll give to you for free. In order to get this report, you just need to take a risk-free 30 day trial subscription to SmallCap Investor Pro. You can do so by clicking here now. I promise that if you’re not happy with this American natural gas company paying a 7.7% dividend that we’ll refund every penny of your trial subscription – and you can keep the special report.
I don’t think there’s a better investment in a better sector right now.
Good investing,
Kevin McElroy
Editor
Resource Prospector
