I’d Rather Talk About Gold

Commodities Commodity Prices
by 
  • 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 [email protected].

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

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