Dear Fellow Investor,
One of the best investment ideas I’ve ever had came to me while riding an elephant in northern Thailand.
I was there with some pals... and after surviving a nerve-wracking river ride on a makeshift bamboo raft... and a run-in with a crazed tarantula... I now found myself perched on a pachyderm’s neck, with his wiry hairs digging into my leg.
Suddenly the beast stopped short.
A little girl was crossing our path, straining under the load of a sloshing bucket of water on her head. The mahout explained that all the wells in the village had dried up… so now this skinny little girl was walking a mile each way three times a day.
Water, I thought. If people are having this much trouble finding clean water in a rain forest, things must be much tougher in most of the world.
I made a mental note to look into water investments... as well as agriculture, metals and raw materials...
Forget Oil—Now This Is a Vital Commodity
If you think oil is a must-have liquid, think about water for a second. No alternative exists for it. Nothing can ever replace it. Less than 3% of world’s water is fresh, and there’s no more of it now than there was a million years ago. But six billion thirsty people must now share it.
More than one billion people each day don’t get enough water to drink or bathe. Every analysis we make suggests that the water shortage is going to worsen—even here in the U.S. Millions of people are pouring into California, Arizona and Florida, where there just isn’t enough water to support them.
What’s more, we use an amazing amount of the stuff in ways you’d never guess.
According to the New Scientist, it can take 360 gallons of water to produce a pound of sugar. And a pound of coffee requires 10 tons of water.
Because people will spend their last dime for a substance they need to survive, I’m bullish on water. Rising water prices will make fortunes for investors who position themselves now to profit from the impending shortage. Clean water is the very definition of a vital resource, and a liquid goldmine for the companies that provide it.
Is There a Better Business Anywhere?
Selling water is the perfect business if you think about it. Demand never drops, and people will pay almost anything to get it.
Most water providers are monopolies selling a product with no known substitutes... and are filling a demand that’s growing in any economic condition. The bottom line is there's a fixed supply and demand for it is exploding around the world.
More and more of us feel forced to buy our drinking water to make sure it’s clean. In my area, if you want purified, ozonated water you’re paying $1.39 gallon. Or, drink the tapwater out of the Potomac River with six pharmaceuticals and transgendered fish! (I’m talking about Washington, DC, my friend, our nation’s capital!)
When water supplies dry up, people get testy. Georgia came to blows with Tennessee when Atlanta’s reservoir dried up. The mighty Lake Lanier was drought-reduced to a duck puddle. And yet the Army Corps of Engineers diverted millions of gallons of lake water to Alabama and Florida.
So, Georgia’s governor, Sonny Perdue, threatened to move the state’s border two miles north to divert water from the Tennessee River!
With nasty water fights erupting between U.S. governors, imagine how ugly things could get between nations and tribes that already hate each other. Battles have been fought over water in Bolivia and Yugoslavia. We’ve even seen terrorist threats to kill the water supply in Asia and the Middle East. No wonder the Pentagon plans war games over likely water conflicts.
So How About that Water Idea I Had 10 Years Ago?
In the 10 years since my elephant adventure, water stocks have gained steadily, inching ahead no matter what was going on in the world. And they’re not slowing down. Last year Bloomberg’s Asia Pacific Water Index was the #1 performing index out of all 2,111 indexes it tracks—up an astounding 237% and 64 percentage points ahead of #2.
Water is the quintessential vital resource. Without it, economies wither up and die just as fast as people.
PORTFOLIO PICK: That’s why I’m so bullish on a little-known R&D outfit that has created a device that generates drinking water from wastewater. It has also just signed a deal to build a huge seawater desalination plant in drought-ridden Algeria.
Now trading for less than $2.50 a share, it could easily jump past $10 in the next few years.
You’ll get the whole story on this Singapore-based outfit in a free report I’ve released for VRI subscribers called The World’s Best Business Model: Selling Water to a Thirsty World.
Water is a perfect example of the must-have commodities you can profit from in Vital Resource Investor. And water is just the tip of the iceberg.
Every year, 80 million new people are born who need to be fed, clothed, and sheltered. Meanwhile, supplies of virtually every natural resource the world needs—hard and soft commodities alike—are shrinking.
I’ve never seen a better time to invest in resource stocks, at least not in my life.
Commodities: The Running of the BULLS
Why is China wooing Africa and why is Russia planting its flag under the North Pole? The world’s nations are racing to assure themselves of the scarce supplies they need to keep growing.
Unlike the last run on commodities in the 1970s, the entire world is growing now—not just Europe, the U.S. and Japan. The rapid growth of China and India get the headlines. But Eastern Europe is growing nearly as fast. So is Latin America. And did you know half the world’s construction cranes are now operating in a tiny, oil-rich sheikhdom on the Arabian coast?
Growing economies mean one-way rising demand for natural resources. In fact, you simply can’t have economic growth without metals and minerals—not to mention food and water.
It’s Pedal to the METALS!
In just five years, the mad global scramble for metals has run copper prices up 435%, nickel 335% and zinc 294%. That’s far more than the widely publicized gains in crude oil and gold.
Aluminum is selling at 20-year highs. Copper is in uncharted territory. Lead has tripled over the past three years. Silver just reached a 25-year peak and nickel recently burst through its previous highs.
Right now, Asia alone gobbles 28% of global production of basic commodities—with economies that are growing four and five times the rate of our own.
China’s blistering economy just clocked in at a mind-boggling 11% annual growth. If China keeps growing at its current rate, in just five years it will need 69% more raw materials than it does today.
Imagine the sort of profits you can expect as commodity competition heats up! In the last prolonged bull market in commodities, from 1969 to 1974, prices rose by up to 1,290%.
If my big-picture take on what’s happening here is correct, your profits will come in even higher. That’s because the stocks I’m buying in Vital Resource Investor are leveraged to the price of the raw materials in such a way that they rise two, three and even four times as high as the commodities themselves.
Resource Nationalism:
Here Come the Poster Boys of the 21st Century
Economic growth is always bullish for natural resource producers. But we’re now seeing an additional strain on supply that we haven’t seen since the OPEC oil embargo of 1973: resource nationalism. This new round of economic extortion could make 1973 look like The Bobbsey Twins at the Beach.
“Resource nationalism” is a polite term for the antics of resource-rich nations that are breaking deals, kicking out foreign miners and drillers, and “liberating” their plants and equipment. They’re playing hardball to get a greater cut of the profits from what’s extracted within their borders. And funnel it right down their pockets.
And who are the poster boys for the new belligerence? Venezuela’s Hugo Chavez. Ecuador’s Rafael Correa. Bolivia’s Evo Morales. And Russia’s own Vladimir Putin.
More on how these “resource bandits” can line your pockets in a moment.
But, now let’s get to the fun part and look at how we’ll make money!
Hot-Wired Profits
After better food and clothes, the first thing a newly-prosperous peasant wants is electricity. With a billion peasants now achieving middle class status, that’s a lot of copper wires.
China shows how much copper a rapidly developing economy gobbles up. In 1990, China imported a mere 20,000 tons, but it now imports more than 1 million tons and is the world’s largest copper consumer.
Copper prices have risen so high that a U.S. penny is now worth 1.4¢, just for its copper content.
Yet despite skyrocketing four times over since 2003, once you adjust for inflation, copper is still cheaper than at similar crunch times in the past. Copper’s price peaked at the equivalent of $5 per pound in today’s dollars at the outset of the 20th century. As more economies reach critical mass and their copper consumption accelerates, we could soon see $5 copper again.
PORTFOLIO PICK: My favorite copper play was founded in 1834 to import copper, tin, and iron for the rapidly industrializing U.S. economy. Over the past 20 years it has diversified throughout North and South America, while expanding into resource-rich parts of Africa and Asia. Its production is rising fast, giving you great leverage to copper prices. This stock is already on a tear. And if the metal rises 20%, this stock should jump 50%.
You would think you’d have to pay a steep price for a fast-grower like this. But you can buy it for barely eight times earnings. Already one of the lowest-cost copper producers in the world, after reducing debt it’s in the perfect position to keep on profiting from the rising copper prices we see ahead.
What’s more, it gives you a decent yield and in this takeover hungry industry, it could be a takeover target, handing you a sudden windfall.
Full details on this money-making juggernaut come you way in Big Red: The Only Metal with a PhD. You can get a free copy of this special report with a guaranteed charter subscription to Vital Resource Investor.
Corn Flakes or Filet Mignon?
Will We All Eat Steak for Breakfast?
If grain prices rise any further, the waitress at the local diner may soon be asking, “Corn flakes or filet mignon?”
Wheat prices are so high that Wheaties now cost more per ounce than sirloin. So, why not start eating steak for breakfast?
And why is this happening right here in the breadbasket of the world? Because we’re trying to do too much with our grain.
We’re trying to feed not just people and animals, but cars, too. The ethanol and biofuel craze has sparked a run on grain and prices have surged.
When the U.S. Secretary of Agriculture warns us that for the first time in history, U.S. farmers might not meet global food demand in 2008, that gets your attention.
Feast on Profits in the Global Food Race
Like too many guests at a skimpy buffet, the world’s exploding population is overwhelming its farmers.
For seven of the past eight years, the world has gobbled up more grain than it has grown. As a result, wheat stocks are at their lowest levels worldwide since 1977, and the USDA says our own stock of wheat is about to fall to its lowest level since the late 1940s.
Meanwhile, the U.N. says we’ll need 60% more food 20 years from now. Where will it come from? Former farmlands are being converted into industrial sites... pollution is taking its toll... shrinking water supplies and insufficient irrigation are slashing yields... all while more food is being diverted to create biofuels.
With 80 million new mouths to feed every year, the developing world desperately needs to boost yields on its limited arable land. And the most effective way to boost yields is with fertilizer.
The problem is that the most populous nations don’t have the minerals to make the fertilizer they need. China’s fertilizer production is extremely limited, so it has become a huge importer. The same is true for Brazil.
Meanwhile, the ethanol craze has pushed corn prices so high that thousands of farmers are converting their land to corn, one of the world’s most fertilizer-intensive crops.
The supply chain is so tight that China has banned its few producers from exporting the precious stuff... and Russia is now taxing fertilizer exports to keep it all home.
PORTFOLIO PICK: A single fertilizer player stands to benefit most from all this demand. It’s the world’s largest producer of potash, the backbone of most fertilizers. Its mining costs are a rock-bottom $23 per ton—giving it tremendous leverage to higher potash prices.
The past three years have seen nothing but good news for this company. It is a $50 billion behemoth with 33% operating margin whose stock has tripled in the past year. It has almost $1 billion cash in the bank and it’s an easy double from here.
Unglamorous but supremely profitable, this gem of a company is a perfect example of the under-the-radar cash machines we love to give you in Vital Resource Investor.
Who’s Winning the Trillion-Dollar Race to Feed the World?
You will, with these three skyrocketing food plays
Rising incomes across the developing world are triggering a sea change in eating habits. As billions of people enter the middle class, they’re enjoying packaged foods, bottled beverages and canned goods for the first time. This spells tremendous opportunity for agribusiness and packaged foods producers. Add the right companies to your portfolio and you’ll be feasting on profits.
PORTFOLIO PICK: One little-known packaged-food producer we’ve discovered is already seeing its sales surge. Hardly known outside China, it’s hard to imagine a food company with a more enviable production arrangement. It profits at every step in the food chain, from the day a seed is planted to the moment its product is scanned at the checkout counter.
PORTFOLIO PICK: This unusual ETF is by far the easiest way to play the burgeoning global demand for food production. It gives you a safe way to profit from corn, wheat, soy beans and sugar without dipping your toes in the dangerous futures arena. But the returns are anything but dull: this ETF has soared 61% in the past year.
PORTFOLIO PICK: Our third pick has cornered 19% of the world’s crop-protection industry. Its herbicides, insecticides and fungicides are vital to millions of farmers raising cereals, fruits, grapes, rice, soybean, and vegetables. Its stock is up 63% in the past year, it is increasing its dividend and special cash payments, and is buying back its own shares aggressively.
Get full details on these food plays with A Feast of Profits: 3 Winners in the Trillion Dollar Race to Feed the World—yours free with a no-risk subscription to Vital Resource Investor.
The Proof is in the PRICES:
Vicious Competition Drives Up Prices for the World’s Raw Goods to Historic Highs
| 2000 price (Jan 1st) |
2008 price (Feb 21) |
|
| Gold $/oz | $345 | $920 |
| Silver $/oz | 5.38 | 18.04 |
| Uranium $/lb | 9.60 | 76.25 |
| Platinum $/oz | 442.50 | 2,169 |
| Palladium $/oz | 449 | 513 |
| Copper $/lb | .85 | 3.81 |
| Aluminum $/ton | 1,636 | 2,856 |
| Nickel $/ton | 8,446 | 27,953 |
| Iron $/ton | 112 | 201 |
| Tin $/ton | 6,125 | 17,400 |
| Zinc $/ton | 1,245 | 2,491 |
| Cotton ¢/lb | 51 | 73 |
| Sugar ¢/lb | 6.12 | 13.87 |
| Wheat $/bushel | 0.25 | 10.30 |
| Soybeans $/bushel | 0.46 | 14.06 |
Move Over Andrew Carnegie—We’re Making Sky-High Profits in the World’s Building Boom
Just as the unfathomably-rich robber barons did a century ago, immense construction fortunes are being made today around the world.
The world’s fourth-richest man is steel baron Lakshmi Mittal. He lives in the most expensive house in England and threw a $55 million wedding for his daughter (chartering 10 Boeing jets and renting Versailles palace).
You can get richer the same way he did: by riding the global construction boom. Or to be more precise, by riding steel, iron and nickel!
33 million Asians are moving into cities every year. In China alone, a new city the size of Philadelphia is sprouting up every month. It’s hard to even imagine how much steel that takes.
Shanghai already has twice as many as skyscrapers as Manhattan and will add 2,000 more in the next five years. Multiply that by similar growth in a dozen other nations, and you can see why I’m so bullish on steel!
The fundamentals for steel investors are strong. Besides global construction projects, energy is another big driver. Strong oil prices will continue to attract spending for steel-intensive pipelines, windmills and oil rigs. Shipbuilding and car production are also big drivers.
PORTFOLIO PICK: My favorite pure steel play is one of the world’s most advanced producers. It specializes in super-profitable high-end products like wire rods, silicon steel sheets and stainless steel. Based in South Korea, it’s at the center of the hottest economic region in the world and it can barely supply its customers fast enough.
Starting from nothing in 1968, it now pulls in almost $30 billion per year. It’s such a good value that Warren Buffett has snapped up as many shares as he can under South Korean law.
This stock has almost tripled in the past 3 years and the bullish case for steel has no end in sight. Asia, the Middle East, Eastern Europe and Russia continue to pour money into their infrastructure. China has cut steel export quotas, adding to pricing pressure. Steel prices are also rising in the U.S. because of falling inventories.
Of course, you can’t make steel without iron...
PORTFOLIO PICK: My favorite iron producer is on the verge of becoming the world’s #1 mining company. Iron supplies are tight, and this substantial company sells its steel in the spot market, indicating strong pricing power. A model of consistency, it should give shareholders 20% gains per year for the next five years.
A corollary construction play is in nickel. Nickel is a key ingredient of stainless steel. Its ability to resist corrosion and stay strong under extreme conditions make it crucial for jet engines and for equipment in the food, oil, chemicals and pharmaceutical industries.
PORTFOLIO PICK: My top nickel play started a century ago and is the world’s premier nickel producer, accounting for about 20% of global production. It even has its own fleet of ships to carry its ore. This stock is a perfect example of what the long bear market did to commodity stocks. Its price barely moved for years, staying stuck in the teens. It’s now around $30 and could easily move to the century mark in short order.
I’ve written up this enticing nickel play along with the steel and iron stocks I’m urging my readers to buy thanks to the global construction binge. You’ll see them all in Make a Pile in the World’s Building Boom, yours free with a trial subscription to Vital Resource Investor.
The Stealth Metal You Can Still Buy on the Cheap
Copper, tin, nickel, iron: You name any industrial metal—it’s soared over the past several years. One equally vital metal, however, has been an almost secret laggard: Aluminum.
Aluminum is every bit as critical to the world’s construction needs as steel. Yet for the past two years, it’s radically underperformed other metals. The culprit? China.
Because aluminum is so important to this manufacturing colossus, China subsidized its local industry for years, resulting in big output numbers that depressed aluminum prices around the world.
Like most price supports, this policy has been a huge money loser for the country as a whole... and it appears that Beijing has had enough.
So China just cut subsidies for aluminum smelters and levied higher export taxes. The result will be shrinking production, higher aluminum prices going forward, and fatter profits for the surviving producers!
This is a hugely bullish development for global aluminum prices. The results have already been dramatic: In mid-February, aluminum prices jumped by the most in 17 months. The average cost of Chinese aluminum production for export is now $2,850, up from $1,600 per ton at the beginning of 2004.
PORTFOLIO PICK: Aluminum is derived from bauxite. My favorite aluminum play owns the largest group of quality bauxite mines in the world. And all this bauxite is near their aluminum factory, so they have virtually no transportation costs. Unlike their competitors (like Chinese makers, which go as far as Africa to buy their bauxite) they don’t have to ship bauxite thousands of miles. As a result, it’s one of the lowest-cost producers in the world... it has a ton of cash and low debt... and is a mouthwatering takeover target yielding 5%.
This is the kind of sure-thing stock you can safely load up on. Keep some of it now and it will keep you later. You’ll get full details on this unique aluminum play in Stealth Profits in the “Forgotten” Metal—free with your trial subscription to Vital Resource Investor.
Investing with the Pentagon: Strategic-Metal Profit Plays
The Pentagon isn’t advertising it, but five of the metals that are critical for defending our nation are in increasingly short supply.
At the top of the list is molybdenum. Because it can withstand extreme temperatures, this metal is vital in creating “super alloys” for use in tanks, aircraft and the space program. (It is virtually impossible to make a jet-fighter engine without it.) And its relative rarity makes it even more important.
With the U.S. fighting two wars, and America’s defense contractors consuming an ever-increasing amount of this irreplaceable metal, molybdenum prices are likely to soar, racking up windfall profits for farsighted investors. We’re buying a little-known molybdenum miner that went public less than a year ago. You’ll find it in your first issue of Vital Resource Investor. If you like the idea of buying something whose price is about to be squeezed sharply higher by the twin forces of rising demand and limited supply, you shouldn’t miss this one.
Gold—Up 251% and Soaring to Terra Incognita
Anyone who kept a dollar under the mattress since WWII now has a piece of paper worth seven cents! But governments cannot print gold, so investors are all but immune to monetary worth-shrinking.
There are so many good reasons to hold gold right now that it’s hard to know where to start. If there’s any investment that’s a shoe-in to benefit from our weakening dollar, it’s gold.
China will soon hold more than one trillion U.S. dollars, and they have publicly said that’s plenty. They’ve hinted quite clearly they plan on spending future reserves on commodities and gold.
Meanwhile, a chasm is growing between production and demand. Miners dig about 2,600 tonnes of gold out of the ground every year, and demand runs at 3,800 tonnes per year. (The gap is filled by recycled scrap and central bank gold.) This supply/demand imbalance will only grow worse if mine output falls as expected over the next few years.
When the mass of investors realize that the dollar’s slow-motion bounce won’t stop for many years, the rush to gold will be on. The yellow metal will soar, dwarfing its 251% gain so far.
The Only Currency Everyone Trusts
As the U.S. dollar weakens under the credit crunch, demand for gold has surged. Central banks globally are dumping the dollar and hoarding gold.
As a result, gold is now the world’s de facto currency. And everybody wants more. How high can gold go? We’ve already seen it break through its old 1980 high of $850 and move above $1,000 an ounce.
Of course, in today’s dollars, that 1980 high is around $3,000 an ounce. I’m not calling for $3,000 gold in 2008, but I do think it will burst through $1,500 per ounce before the end of this year.
Right now, this market is drum-tight. When electric power outages shut down mines in South Africa in January, gold surged $65 in three days.
The three gold picks in my VRI portfolio are already up an average of 44% in just a few months since I bought them.
When I think the jig is up, I’ll say so. But historically, gold stocks don’t really move until growth economic accelerates enough to make inflation a real problem. We’re nowhere near that point, so these gold plays have a long way to go.
When you join Vital Resource Investor, you’ll see that I’m not just tracking bullion with my picks... or simply putting some gold away for a rainy day. I’m talking about hitting a real home run. The stocks you’ll find here possess the leverage to give you a 100% gain for every 10% rise in the price of gold.
THREE CAN’T MISS GOLD PLAYS
How to Pocket a 100% Profit from a 10% Move in Gold
During the past century, we’ve seen three major bull markets in gold. But this time we’re not talking about an everyday bull market in gold. The forces behind the coming global money shift are so strong that when the dam gives way, we will see a sudden and violent move out of paper into gold—driving its price to levels hard to imagine today.
Don’t forget that the tiny gold market gives you tremendous leverage. All the publicly-traded gold companies combined are worth less than Procter & Gamble. If even a tiny fraction of the $50 trillion in stocks worldwide switches into gold stocks, the pressure will propel them to gains you’ll measure in the hundreds of percent.
How to profit best? Easy. Just send for the three can’t-miss gold plays I’ve written up in Gold: Make Life-Changing Profits with the World’s True Money:
PORTFOLIO PICK: You’ll learn all about my favorite gold stock—the true grandaddy of U.S. gold producers. It doesn’t hedge an ounce of production in the futures market, so you get 100% of the leverage a rising gold price offers.
PORTFOLIO PICK: I also reveal a riskier play that mines for gold in New Guinea that will perform extremely well if the price of the yellow metal continues to rise. And given the ongoing M&A activity in the gold industry, I won’t be surprised if it’s bought out at a fat premium to today’s price.
PORTFOLIO PICK: Finally, you'll see the easiest way to own gold that has ever existed. It's just like owning gold bars, but without any of the security worries or storage costs. Plus you can buy and sell it instantly, anytime you want. This novel way to invest in gold debuted in 2004, and now conrols more bullion than the Chinese government.
This exclusive report is not for sale, but your copy is free with an introductory subscription to Vital Resource Investor. Send for your copy today so you can position your portfolio immediately to capture the same life-changing profits that every other gold bull market has made for those who act upon it early!
Our Commodity Picks Fly ABOVE Market Turbulence
Don’t let all the recession talk scare you away from profiting in vital resource stocks. The U.S. economy may be growing slower than we’d like, but it’s still growing. Plus, a full 96% of the world’s consumers live outside the United States... and the driving forces behind the resource bull market are stronger than ever in these countries.
After all... it’s not just surging demand in the developing world or a growing scarcity of easy to access supplies. It’s not just the decline in the U.S. dollar, which could last several more years. And resource stocks aren’t just an inflation hedge or a bet on growing global political instability.
Rather, it’s all these things. Even a recession can’t shake these bull market underpinnings. In fact, a recession would discourage conservation and development, keeping supplies tight. And when growth revives, the bull market will follow suit with a vengeance, boosting our vital resource portfolio even higher.
Let Me Send You All My Current Recommendations
I’ve tried to present the facts as I see them today.
There’s nothing fancy about my premise. It’s basic Econ 101.
Demand for every critical resource in the world is growing faster than supplies. Emerging nations are already using more than half the world’s resources. And their per capita consumption is still a fraction of what we use in the West. Imagine how hard prices will be squeezed as their use approaches ours!
Bottom line: Companies that can deliver the raw goods the world so desperately needs will enjoy constantly rising revenues—and their stock prices will go along for the ride.
I’ll never abandon my safe, high-income stocks. But if you have some discretionary capital, I’m convinced that investing in the right resource stocks now will make you more money in the coming decade than you’ll get anywhere else. So why not try a risk-free subscription to Vital Resource Investor today and make up your mind that way?
You’ll Hear From Me Weekly and Whenever Opportunity Knocks
Vital Resource Investor is delivered lightning-fast via the Internet. Just like a paper newsletter, you get articles, portfolios and special reports. Unlike paper-only publications, you don’t have to wait for your issue to arrive in the mail… plus you have instant access to every issue and report we released before you joined us. You can access it all 24/7, and you can print out whatever you like, whenever you like.
Yiannis and I will post a new article each week on the VRI web site and will alert you with an e-mail whenever we do. If an irresistible opportunity pops up out of the blue, we’ll e-mail you immediately with a simple plan of action. If we see a great opportunity for you to take your profits, you’ll get a flash alert.
If you need anything else, you can always call or e-mail either of us and we’ll be happy to help you in any way we can.
You’ll Get a Lean List of Choice Stocks for the Long Haul
At the core of every issue is my portfolio—a straightforward list of up to 20 hand-picked stocks with specific buy prices... all carefully allocated to capture maximum gains from the global demand wars.
You won’t find any questionable junk—no penny stocks or pitches for rare coins—just first-rate stocks with the potential to return your investment many times over, like Freeport McMoran did for my readers 20 years ago.
I stick to a small number of my best bets—companies that I know intimately well. Every name in my portfolio has the potential to triple and better over the next three years.
Each one is uniquely positioned to profit from a locked-in trend. They are all financially strong, low-cost producers with growing production.
They’re also still cheap, despite several years of strong gains. My favorite resource stocks have “shoe-size” P/E’s ranging from 8 to 13. And those multiples are based on my lowest estimates for 2008 profits.
As a bonus, virtually every company in the portfolio is a takeover candidate. A zinc and silver miner I recommended in my very first issue was bid up 40% on a takeover bid almost immediately... and I am sure that several more will be gobbled up before 2008 is through.
It’s important to remember that my picks can be just as volatile as the commodities they produce, even in the middle of a rip-roaring bull market like this one.
Whether (like me) you’re a conservative buy-and-holder at heart—or just want to take advantage of what may be the biggest growth opportunity for the rest of our lives—I urge you to make your move now.
To celebrate the birth of my new advisory, my publisher is offering a reduced charter price for ground-floor subscribers.
With the charter discount, you get a full year of Vital Resource Investor for only $299. That’s $200 off the masthead price of $500 that he’ll be charging once this introductory period is over. Act now and your price is only 82 cents a day. And don’t forget the three Special Reports that are yours FREE:
#1 The World’s Best Business Model: Selling Water to a Thirsty World
Water is a perfect business model. Demand never drops, people will pay almost anything to get it, and the stuff falls out of the sky for free. Once you build your distribution mechanism, you’re home free.
Rising water prices will make fortunes for investors who position themselves now to profit from the impending shortage.
The best way to profit isn’t with your garden-variety water utilities. Most of these are not really water companies at all but energy empires with small water divisions that give you no big upside.
We’re going with forward-thinking water-technology outfits that have set themselves up for years of profits in cleaning, treating and actually creating “blue gold.”
#2 Big Red: Profiting from the Only Metal with a PhD
The red metal is a such a good economic forecaster that it’s known as the only metal with a PhD in economics. When its price rises, it’s full steam ahead for the economy.
Copper is an economic bellwether because it’s an essential raw material for economic growth. It is used in everything from homes to appliances to cars.
Right now copper and copper stocks are moving sharply higher, signaling strong global growth.
This is just one of the trio of money-making juggernauts you’ll find in Big Red: Profiting from the Only Metal with a PhD.
#3 Gold: Make Life-Changing Profits With the World’s True Money
With this report, you’ll see why gold isn’t just going through the roof in this upcycle. It’s going to the moon. Don’t miss this bonanza! Buy these stocks now, before gold is on the cover of Newsweek.
You can buy these stocks and sock them away. But buy them soon, before gold rips through the next price next threshold. When gold is on the cover of Newsweek, the big gains will be gone.
And given the ongoing M&A activity in the gold industry, we won’t be surprised if it’s bought out at a fat premium to today’s price... a windfall premium that will send you skipping to the bank.
To join Vital Resource Investor for one year at $299, click here.
Better yet, take a two-year subscription for just $599. You lock in the charter price for a full 24 months, and with our money-back guarantee, you won’t lose a dime. Plus you get three additional money-pumping reports:
#4 A Feast of Profits: Who’s Winning the Trillion-Dollar Race to Feed the World? YOU Will with These Three Surefire Food Picks
Rising incomes across the developing world are triggering a sea change in eating habits. As billions of people enter the middle class, they’re enjoying packaged foods, bottled beverages and canned goods for the first time. The opportunities singled out in this report give you an ideal way to leverage your portfolio to a hungry world:
#5 Make a Pile in the World’s Building Boom
Make big bucks every time a skyscraper goes up! The supply-demand squeeze now building in steel is an opportunity so sure, so safe and so obvious, it’s begging to make you richer!
Every region of the world is consuming ever-increasing amounts of steel to fuel and companies that can deliver it will enjoy constantly rising revenues. In your free report you’ll discover:
#6 Stealth Profits in the “Forgotten” Metal
While copper, tin, nickel, platinum, gold—virtually any metal you can name—have soared in price, an equally vital metal has been an almost secret laggard: Aluminum.
You can blame (or thank) China for that.
For years, China subsidized its local industry, depressing aluminum prices around the world. But in a hugely bullish development for aluminum investors, China recently reversed its policy… and aluminum prices surged immediately. You can still buy this “forgotten” metal on the cheap. And the sooner you stake your ground-floor position, the more profits you’ll rake in.
Energy is a huge cost factor in making aluminum, and this $127 billion firm has just acquired a Canadian subsidiary with an almost unlimited supply of cheap hydro energy—a decisive advantage in the global resource wars.
To join Vital Resource Investor for two years at $599, click here.
You’ll get full details on this and our other must-buy aluminum plays in Stealth Profits in the “Forgotten” Metal—free with your trial subscription to Vital Resource Investor.
You’re Completely Protected
I want you to try my service with confidence. So... sign up and relax knowing that you’re protected by a 100% Money-Back Guarantee.
You can cancel at any time during the first three months and get all your money back. No questions asked. After that, you may still cancel and receive a 100% refund on all unsent issues. The special reports are yours to keep just for giving Vital Resource Investor a try.
In a bit of good fortune for anyone who wants to get in now, a sell-off in a few sectors of the commodities market has driven some good stocks down between 20% and 30%. This gives you the chance to grab top-quality merchandise at cheaper valuations than we’ve seen in nine months.
Nothing fundamental has changed in the long-term investing equation. When you have nonstop global economic growth and a dwindling supply of the copper, iron, nickel and other commodities so critical to fuel that growth, you get the mother of all squeeze plays.
I’m convinced that the boom in hard assets will prove to be the #1 investment play of the next decade... or even two decades... and that any investor who misses out will deeply regret it.
Take a look at an issue of Vital Resource Investor and I think you’ll see what I mean.
Sincerely,

Roger Conrad
Editor-in-Chief, Vital Resource Investor
P.S. Please let me send you the package of reports revealing my favorite ways to profit from the steadily-tightening market for natural resources. They’re free with my no-obligation offer. So don’t miss out on this opportunity without even giving it a shot!
I Don’t Like Vladimir Putin, But My Portfolio Loves Him. Yours Will, Too.
Resource investors, it’s time to meet your new business partners.
Our rogues’ gallery of despots and dictators here are your silent partners helping you profit.
Actually, they’re not so silent. Every time they open their mouths they boost prices on a gamut of natural resources. Their rhetorical hot air is like an injection of helium straight into our Vital Resource Investor portfolio.
Mark Twain once quipped “God invented man because He was disappointed in the monkey.”
You may not like the rogue politics, but as long as these economic illiterates continue their monkey business, they will keep prices rising for the stocks we buy in Vital Resource Investor.
Kim Jung Il—This looney-toon’s determination to build a North Korean nuclear bomb makes for a lot of sleepless nights on the Korean peninsula—and in Washington. Every time he gets a step closer to his goal, the higher gold moves in response to international tensions.
Hugo Chavez—This power-crazed demagogue is like Castro with oil. He has already threatened to kick Chevron out of Venezuela and just last month stopped selling oil to ExxonMobil. He can’t keep cutting off his nose to spite his face forever, but as long as he does, our portfolio will continue to benefit.
Joseph Kabila—Congo’s ruthless warlord, whose chaotic reign threatens to completely cut off the outside world’s supply of cobalt, a scarce metal urgently needed for America’s defense effort. As long as Congo is run by men like this, cobalt prices are likely to soar, racking up windfall profits for farsighted investors.
Hu Jintao—China’s leader is determined to make his people twice as rich by 2020. He’s already doubled their income once, and it only took five years. Every little bit richer a billion Chinese get, the more milk, meat and other protein they eat. Global food prices keep rising, and so does our portfolio.
Vladimir Putin—Cutting off natural gas to long-time European customers in the dead of winter shows that this KGB alumnus hasn’t lost his stomach for dirty tricks. He’s also a major reason aluminum and nickel prices are headed higher as he muscles out a greater cut of the producers’ profits.
Mahmoud Ahmadinejad—Iran’s president (and ex-student radical who helped hold 52 Americans hostage for 444 days) is now better known for trying to crash the world’s nuclear club. When he’s not threatening to annihilate Israel, he’s partnering with fellow American-hater Evo Morales (see below) to pledge $1 billion to Bolivian natural gas industry.
Evo Morales---Dubbed the dimmest president on the planet, his anti-American rhetoric and threats to nationalize foreign mining operations make Bolivia’s first indigenous president a Hugo Chavez disciple-in-training. If he makes good on his threats of expropriation, watch tin and copper prices soar even higher.
Robert Mugabe—Zimbabwe’s aging dictator-for-life has ruined what was once one of Africa’s healthiest economies, turning it into a sad and violent shamble. Gold, asbestos and especially copper production have all dropped sharply in the past year. That’s bad news for consumers who now must pay more for countless copper-based products, but just fine for the Mugabe-free copper producer in our VRI portfolio!