Not only have commodities finished 2016 strongly, but the specific outperformers are those that indicate that we're going to see a new supercycle, and they have flashed a clear buy signal.
Copper, iron ore, and crude oil are all up big since Election Day, and it's just the temporary "Trump effect" Ė it's backed by a lot of undisputable financial data that Wealth Research Group tracks.
Since it is the quantity of minerals that is rising, ore processors, which small-mining operations rely on for services, will do very well.
In fact, Peru, the world's sixth largest gold producing nation, is now undergoing a revolution in this sector, and there are only two companies that have formalized legally to take advantage of this situation.
The last time so many global factors came together, commodity prices rose by close to 800%, and select mining shares created a new class of millionaires.
Back in 2003Ė2008, when China was creating infrastructure mega-plans, the last commodity supercycle occurred. Now, it's China, Europe, and the U.S., together with India, Russia, and many South and Central American countries, all building their foundations for the 21st century at the same time. As you can see, we have plenty of upside.
High inflation rates and low interest rates are making high-yield investments close to impossible, and Wealth Research Group profiled two companies in 2016 that yield 8.4%, a requirement to be called a High-Yield Master. Both are up double-digits in three months, and including dividends, they have already returned close to 18.43% on average.
I spent the past week analyzing 53 companies that yield over 7.2% in dividends and have direct upside potential from commodities, and I found one company to own for the long-term.
These inflationary trends are creating a set-up for gold and silver as well.
It is already a fact that no fiat currency has held its status this century versus gold, and there is absolutely no reason to expect that any will in the future.
We own physical gold and silver because governments steal our wealth using currency printing. Gold has had a 2% annual increase in production this past century, but currencies have been printed at a much faster pace.
There is absolutely no question that this chart shows the 36-year downtrend in real assets has approached exhaustion, and aligning with higher mineral prices is the most sensible and contrarian move to make, while 99% of investors are still hypnotized and following the old paradigm.
Another sector, which finding a viable company in is a rare occasion, is marijuana.
2017 could prove to be a pivotal year for marijuana legalization.
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.
Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.
1) Statements and opinions expressed are the opinions of Lior Gantz and not of Streetwise Reports or its officers. Lior Gantz is wholly responsible for the validity of the statements. Streetwise Reports was not involved in the content preparation. Lior Gantz was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
3) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview or article until after it publishes.
Charts provided by Wealth Research Group