Global Financial Crisis Makes Oil A Great Hedge

Source: Seeking Alpha, Jason Schwarz (10/8/08)

...Oil is your new hedge. Its multi-year climb is over and investors can now count on this play to protect their portfolios over the next year. When you're convinced that the time has come to put cash back into the market, make sure you protect yourself with some oil puts. Even when the market rallies, oil’s rise will be subdued and short lived because the global slowdown isn’t going away.

The global slowdown is here to stay and the best way to play it is with oil (USO) puts. One could argue that even without a global slowdown oil puts would be a great investment; with the global slowdown, this one’s a no brainer. Crude oil prices reached a bubble high of $147 in July after a seven year climb. With current prices hovering between $90-$100 a barrel, this commodity has a long ways to fall. There are various ways to play the global slowdown but this one trumps them all.

Earlier this week the Chinese government said they have more than enough gasoline stockpiles because of the dramatic slowdown in their economy. As a result, they won’t be importing any refined gasoline for the second month in a row. This announcement comes on the heels of consistent United States demand destruction throughout the summer months. Bad news for oil bulls. It all comes at a time when oil exploration rigs are booked out for years to come and alternative energy sources like natural gas, nuclear power, wind, coal, etc... are about to be implemented in a major way by the next US President.

...Oil is your new hedge. Its multi-year climb is over and investors can now count on this play to protect their portfolios over the next year. When you gain conviction that the time has come to put cash back into the market, make sure you protect yourself with some oil puts. Even when the market rallies, oil’s rise will be subdued and short lived because the global slowdown isn’t going away.

Announcing Streetwise Live! Events
Source: Streetwise Reports (07/13/2020)

Streetwise Reports is offering 100 investors—at no charge—the opportunity to meet via Zoom with executives of precious metals companies as they discuss recent developments at their companies and upcoming catalysts.

"China's export quota could be opportunity for Canadian miners"

Mexico: Gold's Next Powerhouse Player
Source: Marc Davis, BNW News (11/03/2009)

As the world's key gold producing nations struggle mostly in vain to replenish dwindling below-ground supplies, Mexico is bucking the trend in a big way.

Where Have All the Gold Mines Gone?
Source: Brent Cook, Exploration Insights (04/14/2009)

Given the declining global gold production, mining companies’ demand for reserve replacement and the acute dearth of new gold discoveries, there is no doubt that real economic discoveries will be exceptionally valuable. . .the opportunity for stellar profits is the best it has probably ever been. Identifying the few successes, however, will require vigilant and constant technical assessment of geology and drill results, always with an eye to mine economics.

Congo Completes Mining Review, Says Majors Quit Talks
Source: Reuters (12/20/2008)

"Review process is extended an additional 45 days to allow six companies to return to the negotiating table for direct talks with government ministers."