RESOURCE CONSTRAINT!
Global economic activities depend on natural resources for survival. Everything we consume requires extraction of natural resources. In a very crude description, modern civilization is simply the manipulation of materials on earth to suit our needs and desires. Year after year, economies are consuming more and more everyday due to emerging market demands and technological developments all over the world. In the last fifty years, economic growth, poverty reduction, and improved welfare have led to an increasing demand for global extraction of natural resources such as fossil fuels, metal ores, other minerals; the demand for these industries have risen to nearly 45 percent1.
Overconsumption has made the world’s renewable resources even scarcer; a trend that will only exacerbate while developing economies continue to emerge. With escalating ecological constraints, international markets will find it more difficult to access limited and costly energy and resources.
It doesn’t’t stop there! Population has grown at an exponential rate, resulting in consumption having to increase at a similar rate. Studies project that in 40 years, the world’s population will increase by 50%. More people means more demand for resources: and people need more houses, food, transportation and products. In order to produce such goods that have become indispensable to our lives, valuable mineral reserves must be extracted. This makes early stage metals exploration companies very attractive as they will have the future deposits of materials that will only go up in value.
Mining is one of the most vital investments to fuel global consumption. The way we have been extracting resources so far has been to find deposits that are “easier” and are more of a “jackpot”, and exploit those deposits to the best of our abilities; the “low hanging fruit”. With the low hanging fruit being picked, the next logical step is to find the next best deposit and resource to tap into. Hence, the argument for the future of junior mining stocks.
Energy is the cornerstone of modern civilization.
Oil is one, if not the most important source of energy worldwide, and is used to boost and strengthen economies and production. However, energy supply will not be able to keep up with demand. The era of cheap oil is over: According to the International Energy Agency (IEA), energy demand will increase under a business as usual scenario by 45% between now and 2030, with coal growing by 61% 2. There is a shortage of supply of materials to make our everyday products, and a shortage of supply of oil and gas for our energy needs. In light of oil supply constraints, many countries have reached their peak in oil production and the rates of discovery of oil deposits have dropped, while our consumption has only increased. For a savvy investor, this means that companies that specialize in oil exploration and production are an excellent investment for the future.
Canada maintains untapped potential reserves of energy and large oil deposits, with significant proven reserves of oil and gas second only to those of Saudi Arabia and the US, respectively. 3 Also, Canada’s tar sand is one of the largest oil reserves yet to be produced, holding the majority of the country’s 178 billion barrels of oil resources. 4 These facts are just some of the reasons why an investment in Canada for its energy and mineral capacity is a profitable business venture, one that still remains to be explored.
“Canada firm as top mining destination”
– Mining.com
Since Canada has been known to have safe and excellent mining locations, most people or organizations that consume resources extensively got their eyes on the country. Such individuals often seek exploration companies in abundant areas where they can easily find oil, minerals, and other natural resources. Moreover, studies show that Canada’s mining industry will drastically increase in the next few years, which will mean more investors and more depletion of natural resources. It’s simple supply and demand here folks, demand is increasing, while supply is reducing. The need to increase supply is your opportunity to maximize profits!
In the US, Tthe Federal Reserve, on the other hand, has been aggressively executeding a quantitative easing action to help boost Canada’sto help bolster their economy. In order to put Canada’s financial aspect back on track, it had to take a course of action which would involve an unconventional monetary policy; tThus far, the market’s reaction to the stimulus program witnessed influencing a significant increase in the value of gold, silver, and other commodities. While this may be have inflationary implications, and the efficacy of these policies are up for debate, from a commodity perspective. This is good for investors. , as their business will gain more profit due to the adjustment of price rates. That is, investors who are preparing for the future! Savvy investors who want an edge, want to stay ahead of the game will be looking at commodities, emerging markets, and anything they see will likely rise with time simply due to inevitable market dynamics. Make sure you’re a savvy investor. There is no reason to fall behind and rue missed opportunities – the best times to buy are during the dips.
Canada has beaten 134 countries for the Top Spot in Forbes’ annual list of the Best Countries for Business, and has been performing excellently despite a financial crisis that started a global recession since 2008. What makes Canada so enticing for entrepreneurs and investors? How does Canada remain globally competitive?
It all points to one crucial factor: Canada’s successful economy is backed by an abundant resource and energy sector, which are an extremely vital advantage in a global economy based on the cornerstones of energy and resources. Canada enjoys a strong currency and a much praised banking system that is considered the strongest and most efficient in the world, as rated by the World Economic Forum 6. Statistics also show that Canada as the leader in the natural resources sector, with the economy being supported by thriving industries in mining, oil, gas, and other resources.
Canada enjoys a strong currency and a much praised banking system that is considered the strongest and most efficient in the world, as rated by the World Economic Forum . Statistics also show that Canada as the leader in the natural sources sector, with the economy being supported by thriving industries in mining, oil, gas, and other resources.
As a matter of fact, Canada has 9% of the world’s known uranium reserves, and is known to supply energy from oil and gas to its neighboring country, the US, and other huge markets in Asia like China and India. Canada is also the world’s largest exporter of minerals and metals, and a big player in producing gold, coal, copper and other metals . In 2010 alone, the natural resources sectors (energy, forest and mining) contributed a total of $142.5 billion of Canada’s gross domestic product (GDP). With the technological sector also showing solid growth, this is why Canada is considered by many investors and financial experts as the World’s Safest Economy and the safest country to invest in.
- The TSX-V holds an extensive listing of the world’s top exploration companies in the metals and mining sector, including precious metals such as gold and silver, energy, and oil and gas stocks.
- These companies search for a significant deposit of a resource. The main resource being explored varies depending on the company and management’s primary concentration.
- The Exchange also lists companies that have a goal of producing breakthrough technology (including Medical Life Sciences technology) and other sectors such as REITs, Industrials, among others. You can choose your pick of the sector!
- While many companies have their operations in Canada, there is an abundance of companies exploring the vast natural riches of the untapped emerging markets. Following the high standards set in the Canadian market, they provide the same information and transparency as any comparable company on the TSXV.
With this Exchange, you are the Venture Capitalists. TSX-V Research focuses solely on the TSX Venture Exchange. We have a competitive advantage in providing you pertinent, valuable, and significant information to help you better understand these investments. Stay away from gamblers, go with TSXVResearch.com.
Why is it crucial that you start your investment in these early stage companies today? Time is money in the world of investment, and you will need to build the foundation today for a more profitable tomorrow. While the natural resource sector continues to experience growth, it is best that you take advantage of its countless benefits now. The reason is simple: they’re getting rarer.
We already know that pace of consumption in the world is growing at an exponential rate, while resources are becoming scarcer. Oil consumption alone has been growing at a much faster rate of nearly 3% per year. The global population is booming, industries are growing, and they are all clamoring for a stake in natural resources. It’s a finite pie, and more people want a piece! Make that profitable for you… there’s no reason for you to not. Over time, the energy required to obtain resources will go up; therefore, its costs. Thus, the natural resource sector is one of the most profitable investments today due to their finite supply and an ever increasing demand affected by a population and consumption boost that will rise in many years to come.
Investing in natural resources provides long-term benefits and the potential of high returns. Given current trends, the demand for resources is increasing very rapidly, making their future value far greater.
Figure 3: World Oil Production and Expected Future Demand
We firmly believe that energy and resources will be the investments of our lifetime and the next, and we want you to be armed with the correct knowledge in anticipation of this rapid change. Here at TSX-V research, we analyze penny stocks to provide opportunities and much-needed information for investorsyou. We’re not trying to limit our audience, we understand you may not be an expert, and we’re determined to make sure you still understand the company very well. Today is the perfect opportunity to invest early for massive yields in the future! Don’t waste your time with pump and dump “newsletters” (read: spam). The trend is clear, we need more resources…so go invest in them! Get the information you need right here, and stay ahead of the curve!
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