Gold for Protection; This Metal for Wealth
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Source: Lior Gantz for The Gold Report 03/19/2017
Inflation has been rising at a rapid rate since the election. Not only is the CPI up, but the Dow Jones just experienced its fastest 1,000-point move in history. With the bull market in its ninth year, Lior Gantz of Wealth Research Group believes this is the time for investors to become very selective, and he points to one commodity that is experiencing very tight supply right now.
China's infrastructure plan dwarfs America's and the big players are betting on Asia.
This bull market is now entering its 9th year, which makes it the 2nd longest in history.
In my personal 2017 portfolio and game plan, I stress the need to make sure that you're defending gains and becoming very selective when it comes to new investments in the broad indices.
Every savvy investor must own a combination of Safe Havens.
Zero-percent interest rates have played a major role in making the S&P 500 the most expensive it has been since the Dotcom bubble, and retirees have few options to earn High yields—there are very few Wealth Stocks at bargain prices left.
Now, with inflation rising and Trump's trillion-dollar infrastructure plan on the table, the big banks are finally bullish on commodities after 6–7 years of bearish outlook.
In 2016, I've studied close to 758 resource stocks, and less than 1% of them have the characteristics of greatness.
The resource market is predictable—it booms and busts.
Since the U.S., China, and Europe were in a recession or a severe slowdown between 2011 and 2016, most industrial metals were trending downwards.
The most bullish consequence of a bear market is that the sharper and more violent it is, the bull market that follows is just as explosive.
In 2016, it was zinc that first broke out of its multi-year bear market, and the reason is simple: supply is generationally tight.
Two major mines were closed in 2016, and stockpiles are at a decade low.
Zinc is the world's 4th most in-demand metal, and China cannot carry out its vision for mega-cities with interconnecting highways without a tremendous inventory of zinc.
It consumes close to 47% of the world supply.
The research Wealth Research Group has conducted over the past 4 months has made it clear that the opportunity isn't to get involved with the active miners.
The reason is that there are relatively few pure zinc mining stocks, and no one will be able to ramp up production that easily.
The gains are at the exploration stage, and the fattest gains are the SEDEX deposits.
There are only a few of them ever discovered, and Peter Meredith, who is the right-hand man to mining billionaire Robert Friedland, has become heavily involved with a newly founded company that is sitting on a potential mother lode.
Robert Friedland is the entrepreneur that investment genius Rick Rule calls the "smartest man in mining," as well as the founder of Ivanhoe Mines.
When I profiled Cordoba Minerals (the company he is the chairman of) in January, I had no idea it would advance by 91% in 75 days. He is now making a big play into an undervalued company in the zinc market, and it has not made its big move yet.
Kootenay Zinc Corp. (ZNK:CSE; KTNNF:OTCQB; KYH:FSE) is the ultimate pure exploration company to own.
It is now drilling and looking for the sister of the famous Sullivan zinc mine, one of the world's largest SEDEX silver, lead, and zinc deposits. Over its life, Sullivan produced 17 million tonnes of lead and zinc and 337 million ounces of silver from 150 million tonnes of feed. At current prices, the value of production was USD $49 billion.
It's my personal No. 1 zinc exploration position, and though it is a high-risk, high-reward play, the people involved couldn't be more experienced.
The flagship project is the Sully deposit, and because Tookie Angus—the best dealmaker in Vancouver and the entrepreneur who has led companies to 1,400% returns before—is also in the picture, this company has attracted the quintessential group of SEDEX geologists and geophysicists, all of which are confident this anomaly in the ground is a rich deposit.
Consider taking a position in this company now as a calculated speculation in the zinc market.
The way I look at it is that striking zinc could make this stock a potential takeover for the big boys in the area, and the gains will be in the thousands of percent.
I've spoken with dozens of management teams and reviewed the corporate presentations of 109 zinc projects, and I've never seen a company with such a solid financial position, tight share structure, location in a safe jurisdiction, respected management, and being a potential game-changer to the zinc industry.
This is big, and I guess it's the reason why people with multimillion-dollar salaries, like Peter Meredith, are getting involved in this early stage—the huge potential gain is too overwhelming to pass by.
Zinc is the anti-corrosion metal, and China's booming middle class will gobble up all new supply to meet its car demand.
Get positioned early before drilling results are published and Kootenay Zinc (CSE:ZNK & OTC:KTNNF) becomes a huge news story.
Do your research NOW!
Lior Gantz, an editor of Wealth Research Group, has built and runs numerous successful businesses and has traveled to over 30 countries in the past decade in pursuit of thrills and opportunities, gaining valuable knowledge and experience. He is an advocate of meticulous risk management, balanced asset allocation and proper position sizing. As a deep-value investor, Gantz loves researching businesses that are off the radar and completely unknown to most financial publications.