Things are unfolding exactly as I predicted in two of my most closely watched sectors.
First, we’re seeing big moves in the rare earth elements space…
Last week, the U.S. Army announced plans to fund the construction of processing facilities and mining infrastructure in America to ensure the supply of rare earths.
This news caused one of my rare earths stocks to spike 35% – in a single day.
Plus, there’s action brewing in copper right now… and several catalysts are coming together to prime it for a huge run.
Click below to watch the video or scroll down to read the transcript for details.
Keep walking the path,
Editor, International Speculator
You feel like going for a few laps? This track behind me is pretty empty right now in the rain, but in a couple of months this is going to be a big center of attention when there’s a big event happening here.
It’s going to be crowded with people – it’s going to be hard to get in. And that reminds me a lot of what I think is going to happen in one of the biggest sectors that we’re following right now… the rare earth elements.
Rare Earth Elements
And at the time, the rare earth sector was pretty much like you see the track behind me; it was empty. Nobody cared. No one was interested. Most investors had never even heard of rare earths. Today, I think that is all changing.
So the big news that came out today [December 11] was that the U.S. Army announced that it is going to directly fund the development of processing and mining infrastructure in America to ensure the supply of rare earths.
As I said, this is a reaction against China being one of the biggest suppliers of rare earths on the planet. And basically the U.S. Army wants to ensure that it has its own direct supply and it’s willing to pay up hundreds of millions or even billions of dollars to do that.
So this just happened. The next big thing is going to be that this is going to get rare earths and rare earth stocks on the radar of a lot of people. Watch what happens the next few weeks; this story is just starting to unfold. And as mainstream investors hear that the U.S. Army is getting involved in this, I think this is going to be the beginning of a larger move upward for the stocks.
So watch this space. This is just starting to unfold, just like we thought it would.
Copper’s Building Momentum
The other ride that I think is going to be very enjoyable the next few months is copper. So very quietly copper companies have started to move up. I was just checking and in the last few months the biggest copper producers on the planet, companies like Freeport and First Quantum, are up about 30%.
Again, nobody’s really talking about this; nobody is paying much attention to copper, but the stocks are moving.
And two days ago [December 9] we got a big announcement that Jiangxi Copper, one of the biggest copper companies in China, is going to invest $1.1 billion in one of the biggest western companies, First Quantum. So Jiangxi wants to put a billion dollars into this western company, First Quantum, to get a first look at the copper supply.
Now at the same time, this fits with reports from China that basically there isn’t enough copper to go around for all the smelters in China, and they’re falling over themselves to secure whatever supply they can.
Again, this has not hit the mainstream at all. Nobody is talking about copper; nobody’s thinking about it. Like I’ve said before, I think the end of the trade war is going to happen probably now early in the new year, and that will be a big catalyst for the copper story going mainstream, so to speak.
But even before that’s happening, the stocks are moving. The metal is moving.
I’m looking at other plays. As I told you in my last video update, I’m also looking at plays in the very beaten-down U.S. natural gas space. I have one.
Now my analyst and I have been poring through a bunch of companies. Incredible stories. I mean yields that range from 10% to 20% in some cases. We found one that’s a very-high-yielding stock in a very stable area of the U.S. that’s got solid cash flow.
In the meantime, keep walking the path, or keep running the path, as the case may be, and I’ll talk to you soon.
Dave Forest is our in-house commodities expert. He’s a professional geologist… global explorer… and successful gold stock speculator.
He travels to remote corners of the globe to uncover the best money-making opportunities. His recent visits include Brazil, Myanmar, Colombia, and Uzbekistan, just to name a few. All told, he’s visited 30 countries and over 200 mines.
Every month in his International Speculator newsletter, he uncovers junior mineral exploration companies with the potential to double or triple in 12–24 months. It’s the perfect resource for anyone looking to make a fortune during the coming commodities boom.