One Mining Sector You Should Be Looking At

It’s day two at the Sprott-Stansberry Natural Resource Symposium in Vancouver, Canada.

And if you thought day one sounded good, day two was a cracker!

Doug Casey, particularly, was in fine fashion.

If you have not heard of him, he’s the actual Founder and Chairman associated with Casey Research — a globally accepted investment institution. Casey is libertarian and an anarcho-capitalist. And he’s well known with regard to never not having an opinion.

And he or she lived up to his reputation. While I was hanging onto every one of his words, I was thinking: when is he going to possess something positive to say!

‘Mining is a 19th century business’

Doug started off with a line that sent shivers throughout the space: ‘Mining’s worse today than it’s ever been before. And it has absolutely no future.‘

Not very comforting if you’re a resource investor!

But then again, will he be right?

I mean, mining has been around since before the days of the Roman Empire. Back in those days, the Romans dug up gold, producing an average of one gram for each tonne they mined. Now, you’re mining it for one 10th of a gram. So Doug’s right when he says that ‘most of the high-grade, low-surface build up are gone.’

And yes, gone forever.

Just look back 100 years…

The days of the actual gold rush seem like the fairy tale. No longer can you drop by the local creek and pan gold. You can’t even head to Bendigo or Kalgoorlie, start digging and load up the truck.

Now, complex technology is a must in the exploration business.

This means that studying geology, geophysics and geochemistry is mandatory. And even then, after spending millions of shareholder dollars, there’s not assure in finding a massive, high grade mineral deposit. After all, it’s just analysis at the end of the day.

So what great is there in mining?

To be honest, Doug couldn’t say much.

To start with, before you make any money from the my own, millions of dollars are spent on ecological studies — studies which often consider years to complete.

This isn’t just about all.

While the environmental battle is on, the local communities start seeking a slice of the pie. And, of course, of your time and money.

Then, once you’ve analysed the rock formation, you’ve got to drill it. And if you’re lucky — I mean, truly lucky — you’ll intercept some thing rich and thick. But then there’s millions more to become spent in proving up the deposit.

And if you finally do get around to mining the thing, government shows up again for their slice of the pie. Indeed, seeing the actual mine as an ‘entitlement fund’, government demands its fair share in royalties (if it doesn’t make money) and taxes (if it does make money).

So, indeed, mining is not a sexy business.

But if you like boring…Doug Casey says there is one opportunity

Gold!

Doug, like myself, believes that we’re in a massive bond bubble. For over 12 months, I’ve been warning you about the coming sovereign debt crisis in 2016/17. If you’re wondering, this is the event which should see gold go through the roofing.

And if you question what will take the bubble…

Think interest rates.

US interest rates have been falling for 3 decades. This has fuelled the debt period to Armageddon levels. And it’s nearly ready to pop. Indeed, the very first interest rate hike should come within September/ October. And a second rate rise is likely in December.

These occasions will trigger the end of the actual 30-year bond bull market. So while the stock market won’t crash this time, we’re not looking at quite a situation.

In Doug’s words, ‘The next financial crisis will squeeze the standard of just living, sending the world into a Excellent Depression worse than the 1930s. This is the reason why gold stocks, which are trading at crappy prices, may explode in the years ahead, thanks to fear and greed.’

No argument here. In fact, this is the precise financial crisis that I’ve been preparing Resource Speculator readers for since last year.

I’m helping my readers make use of the resources bear market. The low it goes, the more opportunities exist.

And I believe that we’re yet to see the final phase of the resources bear market. This means commodities have significantly further to crash, including gold, which has been long said will fall to US$931 per ounce.

That will offer you a great buying opportunity to pick up the best gold stocks available on the market.

If you believe that the sovereign debt crisis is coming, and you want to know how you can survive and prosper immensely, resources are the place you’ll want to look in 2016/17.

Click here for more details.

Regards,

Jason Stevenson,

Resources Analyst, Resource Speculator