Category: Energy

Canada is home of some of the world’s finest natural resource companies.  There you will find miners of precious and base metals as well as oil and natural gas producers.  Two of my largest winners this year, Falconbrige and Inco, are both Canadian base metal companies. 

Investors in search of big dividends often find their way to Canada.  Nearly 11% of the Toronto Stock Exchange S&P/TSX composite index is composed of Canadian income trusts.  An income trust is a business entity, which receives very favorable tax treatment and pays the majority of its cash flow out to shareholders. Dividend yields of 10-14% are quite common.  Many oil and gas companies are formed as income trust.  So, over the last few years investors have enjoyed large capital gains along with their dividends. Continue reading “Toronto Stocks Nosedive on Trust Tax Decision”

I am probably starting to sound like a broken record, but this is some good stuff.

Jim Rogers, the man who called the commodity boom seven years ago, “This is a great time to invest in commodities ……. Supply of things like base metals, oil and rubber is crimped after years of underinvestment in mines and oilfields and farms, he says, so prices are heading up. And they will go up, with some transitory hiccups, well into the next decade and perhaps even the one following. Copper, zinc and oil have all at least doubled in the past three years. You’ll see more doublings in many more commodities.”

Rogers, author of Hot Commodities, says his optimism comes right out of the history books. The shortest commodity boom, which began in 1966, was 15 years, he says. The longest: 23 years. The current one: 7 years (forget the slump we’re in now). The long trend reflects this fact: Lots of commodities can’t be produced quickly. By the time miners or drillers or farmers realize that demand has outstripped supply, it’s too late.

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In Ron Paul’s article from last week, he stated that he favored less taxes on everyone – rich, middle class and poor.  The premise is that the money is much better utilized in our hands than by Congress.  Our three options save, invest or spend – all benefit and drive our economy.

The impact on savings to an economy didn’t really hit me until I read an article on my favorite subject commodity investing.  In reference to China and India’s commodity usage, it stated the best predictor of economic growth is it savings rate.  China’s domestic saving rate is 40%.  That statistic alone states that we are in for a long boom.  The article also highlights some other indicators that suggest that China’s demand for commodities is in its infancy.

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Source: Financial Times
by Jim Rogers

Jim Rogers has been the most prominent and consistent champion of the commodity bull market. Long before sharp price rises of commodities started to attract headlines, Mr Rogers forecast a long-term bull market for the sector.

With commodity prices showing some recent weakness, Mr Rogers can answer your questions on the future direction of the market – has the commodity bull market burst? Will oil weaken further? Can gold still hit $1000 an ounce as he forecast earlier this year?

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