I know the power of a good idea.
interests were the web and information retrieval, I trained librarians. Having studied economic
history it became clear that great changes were near.
My premise is that the economic decline
of the United States, political stresses and supply and demand
fundamentals have created unique investment opportunities: back in 2001 when
commodities were selling for less in real terms than ever before, I recommended silver as an investment as its price was the lowest it
had been in 600 years Uranium,
gold and silver will be propelled to new inflation adjusted highs near the 3000
an oz level and as of mid Feb 2007, I calculate that base metal prices and the CRB index are at some 30% of the eventual highs.
Silver remains a interesting special case; the only investment that has tremendous upside with
almost no downside risk.
In a few years it will probably trade at over US$50 an oz.
Australian resource companies that can navigate the cost pressures of peak oil have a tremendous future.
Inflation and rising rates can be expected over the next few years.
Looking at equity
markets I conclude that the United States will see recession in 2007, but, apart from
corrections, this will not impact commodity prices due to Chinese,
Indian and resurgent Japanese demand. The US fiscal situation is beyond conventional
remedy; this once financially strong nation must now either massively inflate or
spiral into deflation. (think of Japan without the savings).
To preserve wealth in this scenario one
must invest in
well run resource companies, for the record, my favourite mid cap is a company
Oxiana. My central message is that the rules of the game are about to
suddenly change: are you ready?
With the careful use of leverage, one should be able to triple net worth over
the next two years; because opportunities like this don't arrive every day, I
feel its important I share my insight.
I wrote a year ago that "The current bull market in uranium
producers and explorers probably hasn't even begun". Well, its begun but just
My work is informed by my
passion for the sciences, the history and philosophy of science
and a long view of history; a record of manias, crashes, conflict and
accelerating technological and social change.
Please feel free to write anytime
and pop back often.
live in Sydney, Australia.