In many of my posts on the economy I’ve explained why I believe Governments around the world will continue to print money to try to paper over past and future deficits and avoid a deflationary credit collapse. This monetary inflation will lead to rapidly rising commodity prices.
I don’t generally give stock advice on Liberty Insight, but in my latest article on Seeking Alpha titled, “How Sandstorm Makes You a Private Equity Investor“, I discuss two natural resource companies that should thrive in a period of rising energy and commodity prices.
The article isn’t a complete analysis of the companies, but more of an explanation of their unusual business model and how it provides access to the types of natural resource investments that would generally be off-limits to the typical investor. Here’s a snippet from the article:
The U.S. Government has established a series of rules and regulations to “protect” average investors from “risky” investments. One of the ways they protect us is by limiting certain investment opportunities to accredited (rich) investors. On an individual level, accredited investors are individuals who have at least one million dollars in liquid assets or have earned an income over $200,000 for the past two years. (Apparently, if you only make $199k per year, you are a brain-dead cow and can’t be trusted with your own investment decisions.)
One type of investment that is unavailable to the average investor is the private placement. Private placements are simply deals made between a company looking to raise capital and a financing company or broker which provides capital. Typically, the broker will establish terms for the financing and then raise money from its accredited clients to invest in the deal.
So how can the average investor who doesn’t have a million dollars get a piece of the private placement pie?
Click here to read the full article and find out.
[Remember, I am not a registered investment advisor of any kind. You are responsible for doing your own research and analysis. Any investments you make based on my suggestions are your own damn fault.]