Exclusive: This Left-For-Dead Sector Is Making A Major Comeback

      There was the time in the jungle of Colombia where I turned around from examining a rock outcrop only to find a squadron of men in camouflage emerged from the trees, pointing machine guns at my team.

There were two possibilities. They could have been army soldiers on regular patrol, checking to see what we were doing in this out-of-the-way area, in which case, things would be fine.

But in this particular spot it was equally possible these were rebel troops of the FARC or ELN guerrilla movements — both of which are known for kidnapping and holding prisoners in the jungles for months, years, or even decades.

As they waved for us to come forward, we had a tense moment of decision — go peacefully into what might be a trap or make a run for it up the hillside?

The terrain was against us, so we chose to approach. Hearts in our mouths, we neared the group of men — who then identified themselves as army. It was one of the greatest rushes of relief I’ve ever felt. They gave us a lecture on safety and sent us on our way.

#-ad_banner-#Not your typical investment newsletter fare.

But neither is Dave Forest your typical Chief Investment Strategist.

The excerpt above comes from the December 2015 issue of Scarcity & Real Wealth, where Dave went on to recommend a stake in Caledonia Mining (OTC: CALVF). At the time, shares were changing hands for $0.60. Four and a half months later, Dave sold Caledonia for a 44.4% profit.

That’s an impressive gain. But that’s how it goes in the natural resources sector, where fortunes are made (and lost) in just a few short years — and sometimes, months or even weeks.

Individual investors have fallen asleep when it comes to this sector. It’s understandable: many important commodities (most notably oil) have been in a slump. And in an environment where broader stock markets have steadily risen over the past few years, the idea of treading into this notoriously boom-or-bust corner of the market might seem like a fool’s errand.

But there’s ample evidence to suggest we’re about to witness a serious turnaround in a few key commodities. The question, then, is which commodities and which companies that produce or process them stand the best chance of handing investors market-beating gains?

For answers, I turned to StreetAuthority’s very own Dave Forest, Chief Investment Strategist of Scarcity & Real Wealth. What follows is the first part of an exclusive interview with Dave on everything from his thoughts on the commodities markets (including gold and oil) to how most investors completely miss out on the best profit opportunities — as well as the names and ticker symbols of his recent favorite picks.

Brad: There’s a lot we can talk about in the commodities space, and I want to get to that in a moment. But first, please tell our readers about yourself.

Dave: I call myself a “recovering geologist.” My training is technical — I spent a lot of time in the wilderness looking for big mineral deposits and oil and gas fields. The thing is, most geologists are wildly optimistic — almost romantically so. They’re dreamers, and the idea of a big find keeps them going.

I’ve had the opportunity to transition from that life to being an analyst and working in public markets, which teaches you the harsh realities of business and project economics. Today I still love getting out in the wilds and exploring, but I always do it with a clear vision in mind of the qualities I’m looking for in a project. I’m very selective. And I bring the same approach to analyzing and selecting stocks.

Many StreetAuthority readers might remember me from StreetAuthority’s former Top 10 Stocks newsletter, the editorship of which I had to recently set aside because of increasing demands on my “day job.” Scarcity & Real Wealth, however, is the perfect complement to my other business activities and areas of expertise.

Resource companies can be immensely profitable. One of my last public ventures appreciated about 3,100% in three years from the price where the founders invested. A return like that is rare, of course. I have to be very disciplined in picking the best projects and management teams — and stocks.

Brad: I should also note that you spend a lot of time travelling to some pretty exotic places around the globe. Why do you do this, and how it is relevant to Scarcity & Real Wealth?

Dave: Yes, I actually just got back from Thailand and Myanmar, where I’ve been spending a lot of time lately.

Natural resources aren’t like other businesses like tech or manufacturing. With those sectors, you can set up an office or factory almost anywhere on Earth. But in mining or petroleum, we have to go where the big deposits are located. And increasingly, the largest discoveries are made in frontier countries — places where there hasn’t been a lot of modern exploration.

Myanmar is a prime example. It has a long history of mining in colonial times, but has been basically closed to foreign investment for half a century because of military rule. That’s now changing, and I believe it will open the door for major profits from big discoveries there once people start walking around and looking. That’s the kind of wave you want to be on the front lines for. It’s easy money if you’re willing to be a little bold. I’ve been in rebel camps and slept in grass huts out in the countryside looking for The Next Big Thing. It’s not five-star for sure, but that’s how you uncover big opportunities. And it’s incredibly interesting.

All of this work relates back to Scarcity & Real Wealth in large part because I get a lot of information when I’m traveling on sites like these. I’m lucky to spend a lot of time with the world’s best geologists, investors and other professionals, so I hear about a lot of important goings-on across the resource industry.

For example, I didn’t fully grasp the scale of copper demand in China right now until I talked to one government advisor who had just returned from there. This fellow stated emphatically that copper prices have to rise because of the amount of buying in the country — and when I looked into the numbers he discussed, I realized he’s absolutely correct.

In the most recent issue of Scarcity & Real Wealth, I made a detailed case for copper based on this research, and I named what I believe to be the best single play on the red metal right now.

Brad: So in general it sounds as if the time is right to revisit natural resource stocks…

Dave: Most investors don’t consider commodities until these markets are at their peak. Back when gold was breaking $1,700 and oil was topping $100, everyone loved these sectors. The people who bought in then lost their shirts. My experience is the exact opposite: when things get cheap, I get excited.

I’ve seen how much money is made when downtrodden sectors have their inevitable bounce back. From that perspective, this is one of the most exciting times in recent memory — today we can buy top-name mining and energy stocks for a fraction of the price they were going for several months ago. These investments are going to make a lot of money for the people who have the foresight to buy them while they’re still cheap.

Remember, I said that some of the gold stocks in my portfolio — big names, major miners — are up over 200% during the last three months alone. And that’s come with a relatively small move in the gold price. If this market really starts to move, then the gains for the stocks are going to be truly spectacular. I’d urge investors not to wait until it’s front-page news to start looking here.

Editor’s Note: I hope you enjoyed the first part of this exclusive interview. Stay tuned for tomorrow’s StreetAuthority article, where we’ll feature the second half of Brad and Dave’s conversation, including Dave’s specific thoughts on gold, oil and more (as well as names and ticker symbols of some favorites).

In the meantime, we’ve made arrangements with our publisher to extend a special offer to StreetAuthority readers who want to get in on the next great commodities boom — before the crowd catches on. Right now, we’re offering a one-year subscription to Scarcity & Real Wealth for only $99. We normally charge $399 for this newsletter — so it’s a great deal if you want to give Dave’s newsletter an absolutely risk-free trial.

Along with your $300 savings, you’ll also receive two free research reports. These special reports reveal exclusive insider information designed to help you prosper from the coming “gold boom” and more. If you’d like to take advantage of this limited time offer, simply follow this link (without having to watch a lengthy sales video).