By The Gold Report
Tom Beck, editor of Portfolio Wealth Global, says if he’s learned one thing in the markets, it is that Jim Rogers never misses a big long-term investment thesis, and that Rogers has basically told investors to “forget China, buy Russia.”
Jim Rogers first visited Russia in 1966 and was pessimistic for almost five decades, but he now sees Russia’s vast natural resources (it’s the world’s largest petroleum producer) and that it is not a significant debtor nation.
Rogers is long the ruble and Russian markets. “I was bullish on Russia before Trump came along with his positive comments,” he says, but I think he is bullish because of this chart.
He has been buying gold on dips, but I’ve read all of Rogers’ books over the years, and I think the reason he is all over Russia is because it is not Trump’s major enemy in the trade war.
A more aggressive stimulus plan is going to embark this year, and I wouldn’t be surprised to see central banks using their lawful loopholes to create “direct injection” programs for the U.S. economy.
A country that adds gold reserves to their system will thrive in this inflationary environment much better than countries that dump gold and buy dollars and Treasuries.
This is why, on top of high-yield, under-the-radar investments, I am following Jim Rogers into Central Asia耀pecifically with regards to gold.
Gold miners are going through a tough cycle because they can’t find new deposits easily, but that’s not the whole story.
The big miners, the behemoths, have become profitable for the first time in years.
This is a major turning point.
What they are after now are acquisitions!
Their assets are depleting, and they will look to make major takeovers of juniors葉hat’s much easier than finding new deposits.
Yellen, Draghi, Bernanke and all the people who think that wearing a suit makes them smart (we call them liars) are buying gold遥es, central banks are the major driving force behind gold demand.
I have seen only one national central bank, though, that is openly encouraging its citizens to buy gold. This is Kyrgyzstan’s Tolkunbek Abdygulov, who told the citizens that his dream is to turn the former Soviet Union member into “a nation of savers.”
Because Kyrgyzstan has some of the best gold mines in the world, and because they are so friendly to gold, the next major takeover can come from there, and these large-cap “eating up” junior deals have historically made investors a fortune.
Jim Rogers loves Russia because he knows their equipment during the communistic era was primitive and that a new company drilling historical Soviet holes謡hich already have 900,000 ounces of high-grade gold estimates幼an reveal overnight that the mineralization is much larger with modern technology!
This generational discrepancy between Soviet era mentality and modern-day Russia is what I think Jim Rogers is fascinated with in general, and the company Portfolio Wealth Global discovered is using that opportunity in Kyrgyzstan now.
Tom Beck is senior editor of Portfolio Wealth Global. Known as one of the first millennial millionaires in the United States, Beck is a relentless idea machine. After retiring two years ago at age 33, he’s officially come out of retirement to head up Portfolio Wealth Global. He brings a vision of setting a new record for millionaires with his seven-year plan to accelerate any subscribers’ net worth who will commit to the income lifestyle. Beck delivers new ideas on the marketplace that were once only available to the rich. Traveling the world, he’s invested in over a dozen countries, including real estate.
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) Tom Beck: I, or members of my immediate household or family, own shares of the following companies referred to in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies referred to in this article: None. My company has a financial relationship with the following companies referred to in this article: Kenadyr Mining Corp. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor’s fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
5) 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 courtesy of the author