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Commodities Players Are Set Up for Market-Crushing Gains

The resource sector's devastating five-year bear market saw the Bloomberg Commodity Index drop 60% from its 2011 peak.

Naturally, that crushed the world's dominant resource producers; the top 40 companies saw their market caps shrink by $27 billion in 2015 alone.

All along, these producers have had to clean house, slash spending, reduce headcount, and rationalize every last cent they did spend as production crashed. It was the law of the jungle in action, survival of the fittest. Plenty of producers went straight out of business.

It wasn't easy to watch, and it was even tougher to invest in.

But the cycle is swinging back in a big way, thanks to recuperating demand running up against lean supply. The Bloomberg Commodity Index has halved its bear market losses, gaining 30% since January. Some of its components have come close to doubling, too.

Remarkably, all those gains have come at an insanely low price, relative to other asset classes. And, as you'll see, this particular bull is about much more than simple supply and demand.

Here's my favorite way to get the maximum profit from what's coming next...


This Metals Play Will Reward Investors for a Long View

Most of the time, platinum costs about 30% more than gold. That's been the average for the past 40 years.

But every once in a while, that relationship gets distorted. When that happens, platinum surges powerfully, producing huge returns for investors who get in at the right time and stay the course through any volatility that comes our way over the next few months.

But… that distortion is unfolding now, so it's time to make a move to play platinum.

We won't get another chance like this for years...


Why Is the South China Sea Important?

Why is the South China Sea important? At first look, the island group seems uninhabitable and worthless – but this observation would be grossly in error.

These islands sit on the edge of the most lucrative fishing area in the South China Sea. They are also on the edge of one of the most oil- and gas-rich areas yet discovered.

And the Spratlys are claimed by no less than six different countries.

"This is definitely a situation you want to watch closely," Money Morning Executive Editor Bill Patalon told readers on Dec. 8. "Any kind of a major 'incident' there will clearly have a big – and negative – impact on the world financial markets."

Here's a look at the irresistible treasures that make ownership of the South China Sea crucial...


The Commodity Prices Nightmare of 2015

Commodity prices have been getting decimated in 2015.

We mostly hear about the decline in energy since oil and natural gas are down 33.4% and 38.5% this year.

But this comprehensive chart shows how energy is just the tip of the commodities iceberg...


Why This 6-Acre South Dakota Ghost Town Is On Sale for $250,000

A South Dakota ghost town just reduced its sale price from $399,000 to $250,000.

Investors from the United States to Russia have shown interest in the property, but every offer has fallen through since 2014.

Find out why investors may be getting more than they bargain for if they purchase this seemingly too-good-to-be-true six-acre property.


How to Spot the Commodities Recovery First

Commodities prices have essentially crashed.

The Thomson Reuters/CoreCommodities CRB Commodity Index peaked near 365 in 2011.

Today it sits at just 189, a brutal loss of more than 48%. Gold, silver, oil, natural gas, uranium, coal, iron ore, and copper are all at or near multiyear lows.

It's been devastating for companies producing them and countries dependent on exporting them.

But by definition, commodity production is a cyclical business, and what goes down simply must come up.

In fact, there's so much upside potential at the other end of this sector-wide slump that my eyes have been glued to some important indicators – including some that few others are looking at.

When a bottom and recovery develops, it will appear here first. That will give us the earliest opportunity to capture gains on the way up.

I really like what I see right now. Let me show you...


If These Commodity Prices Tank… Run for Your Life

Both U.S. and overseas stocks have been rallying since their ugly August sell-off.

But, if these key commodity prices tank, expect stock prices to follow.

Oil and copper hold the keys to the future of stock prices…

Here's why...


A Simple Way to Profit from Glencore's Complex Problems

Glencore Plc. is the world's biggest, most important commodities trader, and it is in big trouble, under heavy pressure from all directions.

Too many things have to go right for Glencore to escape. If it can't pare down its debt load fast enough, if it can't raise cash fast enough, if ratings agencies junk it, or if commodities prices keep falling, Glencore could implode – violently.

And thanks to its outsize position and importance to the global commodities market, any meltdown at Glencore would have truly global implications across the commodities and debt markets, derivatives, emerging markets and, of course, U.S. and world stock markets.

Glencore's situation is really complicated, but I'm going to show you a simple way to cash in big when this company heads over the cliff - and takes a large portion of the global economy with it...


Glencore's Collapse Gives Commodities Their "Lehman Brothers Moment"

On Monday, European commodities and mining powerhouse Glencore had a very bad day, and its shares dropped 29%.

Maybe you hadn't heard of Glencore before Monday. But I'd wager that, by the end of this year, everyone will know the name. Just like they know the names AIG, Lehman Brothers, and Bear Stearns.

You see, what's happening with Glencore is an eerie, picture-perfect replay of what happened in the AIG meltdown of 2008.

And what happens next is going to rock the entire market.

We all have to move quickly on this one...

commodity prices

Commodity Prices Update: Faber, Icahn, Soros Make Big Bets on the Sector

A few legendary influencers in investing are making huge bets right now on commodities, an area that's faced – and continues to face – some pretty strong headwinds.

Famed hedge fund manager Stanley Druckenmiller recently made a $323 million bet on gold. Carl Icahn took an 8.5% position in copper miner Freeport-McMoRan Inc. (NYSE: FCX).

What are we to make of this? And how could this impact commodity prices? Take a look...