{"id":570,"date":"2011-02-04T13:13:45","date_gmt":"2011-02-04T17:13:45","guid":{"rendered":"http:\/\/www.silver-investor.com\/blog\/?p=570"},"modified":"2018-06-10T10:58:18","modified_gmt":"2018-06-10T10:58:18","slug":"wilderness-of-mirrors","status":"publish","type":"post","link":"https:\/\/www.themorganreport.com\/blog\/wilderness-of-mirrors\/","title":{"rendered":"Wilderness of Mirrors"},"content":{"rendered":"<p><strong>Wilderness of Mirrors<\/strong><br \/>\nRichard (Rick) Mills<br \/>\nAhead of the Herd<br \/>\n<em>As a general rule, the most successful man in life is the man who has the best information<\/em><br \/>\nAccess to raw materials has become essential to the functioning of all industrialized economies. Threats to access and distribution of these commodities could include:<\/p>\n<ul>\n<li>Political instability of supplier countries<\/li>\n<li>The manipulation of supplies<\/li>\n<li>The competition over supplies<\/li>\n<li>Attacks on supply infrastructure<\/li>\n<li>Accidents and natural disasters<\/li>\n<li>Climate change<\/li>\n<\/ul>\n<p>Every country imports and exports raw materials to one degree or another. As raw materials are the essential\u2019s for a country\u2019s survival, development and progress, everyone is looking for permanent, secure suppliers. A very worrying, and growing trend, is that countries rich in resources are limiting the availability of raw materials &#8211; commodities that are the building blocks of modern societies &#8211; in order to support their own industries. Such export restrictions could start confrontations over scarce resources.<br \/>\nCountries can restrict the export, or subsidize the import of, raw materials by means of:<\/p>\n<ul>\n<li>Export taxes<\/li>\n<li>Export licenses and or quotas<\/li>\n<li>Operating dual pricing schemes<\/li>\n<li>Subsidizing the import or local purchase of raw materials<\/li>\n<\/ul>\n<p>Inflation is a factor and is already infecting commodity prices.<br \/>\nWe\u2019re heading to a very inflationary environment. US President Obama is promising trillion dollar deficits for years to come and the US dollar is still the world\u2019s reserve currency. With all exporting countries trying to keep their currencies weaker then the US dollar &#8211; to make their exports competitive &#8211; the inflation rate is going to rise much higher.<br \/>\nWhenever governments are creating money and spending to excess inflation rears its ugly head and investors move into hard assets. The best hard assets to buy during these periods are commodities.<br \/>\nOur reality is we\u2019re living on a relatively small planet with a finite amount of resources, climate change is increasingly playing a role and we have a growing human population. Accessing a sustainable, and secure, supply of raw materials is going to become the number one priority for all countries. There\u2019s no doubt in this author\u2019s mind we are going to see much tighter supplies of, and higher prices for, commodities.<br \/>\nIt\u2019s a fact in the mining world that most discoveries are made by a) junior mining companies and b) old time individual prospectors. In this author\u2019s opinion junior resource companies offer the greatest leverage to increased demand and rising prices for commodities.<br \/>\nIf \u00a0I was looking for superior investment vehicles to take advantage of what I think I know regarding the future for commodities I\u2019d be looking at junior resource companies, not majors, involved in the search for, and development of, the worlds future sources of commodity supply &#8211; majors are exposed to various industries such as:<\/p>\n<ul>\n<li>Storage<\/li>\n<li>Transportation<\/li>\n<li>Refining<\/li>\n<li>Chemical processing<\/li>\n<li>Retailing<\/li>\n<li>Distribution<\/li>\n<\/ul>\n<p>Which are not correlated directly to specific commodity price rises like junior resource companies can be.<br \/>\nJuniors, not majors, own the worlds future mines and juniors are the ones most adept at finding these future mines. They already own, and find, what the world\u2019s larger mining companies need to replace reserves and grow their asset base.<br \/>\nJunior resource company\u2019s serve an important role in the commodities markets \u2013 they feed the supply chain.\u00a0<br \/>\nIn 1996 the whole junior bull market was centered around Bre-X. Then there was the technology stock boom based on the greater fool theory. The last bull market run for junior companies started in 2002 and imploded in 2007\/2008. The TSX (and TSX.V) has experienced three major boom and bust cycles in the last fifteen or so years. This author believes we are on the cusp of another bull market run for junior resource companies.<br \/>\n<strong><em>In a wilderness of mirrors, who can you trust?<\/em><\/strong><br \/>\n\u201cWilderness of Mirrors\u201d is a phrase coined by the 1950s era counter-intelligence chief John Foster Dulles to describe the intelligence game. In particular, the phrase refers to the difficulty of separating disinformation from truth.<br \/>\nThe opportunities in the junior resource sector are significant. But the junior population is quite large and there are literally thousands of stocks to choose from that want your dollars.\u00a0<br \/>\nThere is a steep learning curve and there are serious risks \u2013 great rewards come hand in hand with great risk. You must be prepared to do your own due diligence and uncover the\u00a0opportunities.<br \/>\nYou must be able to evaluate these opportunities, pay regular attention to your portfolio, manage the risk and take responsibility for your own decisions.<br \/>\n<em>I keep a vigil in a wilderness of mirrors<br \/>\nWhere nothing here is ever what it seems<\/em><br \/>\n<strong>Vigil in a Wilderness of Mirrors<\/strong> by Fish<em><\/em><br \/>\nIs the junior resource sector on your radar screen? If it isn\u2019t, maybe it should be.<br \/>\nRichard (Rick) Mills<br \/>\nrick@aheadoftheherd.com<br \/>\n<a href=\"http:\/\/www.aheadoftheherd.com\/\">www.aheadoftheherd.com<\/a><br \/>\nIf you&#8217;re interested in learning more about the junior resource market please come and visit us at www.aheadoftheherd.com.<br \/>\nMembership is free, no credit card or personal information is asked for.<br \/>\n***<br \/>\nRichard is host of aheadoftheherd.com and invests in the junior resource sector. His articles have been published on over 200 websites, including: Wall Street Journal, SafeHaven, Market Oracle, USAToday, National Post, Stockhouse, Lewrockwell.com, Casey Research, 24hgold, Vancouver Sun, SilverBearCafe, Infomine, Huffington Post, Mineweb, 321Gold, Kitco, Gold-Eagle, The Gold\/Energy Reports, Calgary Herald, Resource Investor and Financial Sense.<br \/>\n***<br \/>\nLegal Notice \/ Disclaimer<br \/>\nThis document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Richard Mills has based this document on information obtained from sources he believes to be reliable but which has not been independently verified; Richard Mills makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Richard Mills only and are subject to change without notice. Richard Mills assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, I, Richard Mills, assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information provided within this Report.<br \/>\nRichard Mills does not own shares of any company mentioned in this report.<br \/>\nNo company mentioned in this report is an advertiser on his website aheadoftheherd.com.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Wilderness of Mirrors Richard (Rick) Mills Ahead of the Herd As a general rule, the most successful man in life is the man who has the best information Access to raw materials has become essential to the functioning of all industrialized economies. Threats to access and distribution of these commodities could include: Political instability of<span class=\"read-more\"><a href=\"https:\/\/www.themorganreport.com\/blog\/wilderness-of-mirrors\/\" title=\"Read More\">More<\/a><\/span><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[121,89],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Wilderness of Mirrors<\/title>\n<meta name=\"description\" content=\"Wilderness of Mirrors\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.themorganreport.com\/blog\/wilderness-of-mirrors\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Wilderness of Mirrors\" \/>\n<meta property=\"og:description\" content=\"Wilderness of Mirrors\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.themorganreport.com\/blog\/wilderness-of-mirrors\/\" \/>\n<meta property=\"og:site_name\" content=\"The Morgan Report News\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/pages\/The-Morgan-Report\/317004435015437\" \/>\n<meta property=\"article:published_time\" content=\"2011-02-04T17:13:45+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2018-06-10T10:58:18+00:00\" \/>\n<meta name=\"author\" content=\"David Morgan\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@silverguru22\" \/>\n<meta name=\"twitter:site\" content=\"@silverguru22\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"David Morgan\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.themorganreport.com\/blog\/wilderness-of-mirrors\/\",\"url\":\"https:\/\/www.themorganreport.com\/blog\/wilderness-of-mirrors\/\",\"name\":\"Wilderness of Mirrors\",\"isPartOf\":{\"@id\":\"https:\/\/www.themorganreport.com\/blog\/#website\"},\"datePublished\":\"2011-02-04T17:13:45+00:00\",\"dateModified\":\"2018-06-10T10:58:18+00:00\",\"author\":{\"@id\":\"https:\/\/www.themorganreport.com\/blog\/#\/schema\/person\/2f153b749f1b9c4e76eacf9ee3cc046a\"},\"description\":\"Wilderness of Mirrors\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.themorganreport.com\/blog\/wilderness-of-mirrors\/\"]}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.themorganreport.com\/blog\/#website\",\"url\":\"https:\/\/www.themorganreport.com\/blog\/\",\"name\":\"The Morgan Report News\",\"description\":\"Helping You Build And Preserve Wealth\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.themorganreport.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.themorganreport.com\/blog\/#\/schema\/person\/2f153b749f1b9c4e76eacf9ee3cc046a\",\"name\":\"David Morgan\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.themorganreport.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/5580128866d1436555aa5bfafd8133d2?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/5580128866d1436555aa5bfafd8133d2?s=96&d=mm&r=g\",\"caption\":\"David Morgan\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Wilderness of Mirrors","description":"Wilderness of Mirrors","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.themorganreport.com\/blog\/wilderness-of-mirrors\/","og_locale":"en_US","og_type":"article","og_title":"Wilderness of Mirrors","og_description":"Wilderness of Mirrors","og_url":"https:\/\/www.themorganreport.com\/blog\/wilderness-of-mirrors\/","og_site_name":"The Morgan Report News","article_publisher":"https:\/\/www.facebook.com\/pages\/The-Morgan-Report\/317004435015437","article_published_time":"2011-02-04T17:13:45+00:00","article_modified_time":"2018-06-10T10:58:18+00:00","author":"David Morgan","twitter_card":"summary_large_image","twitter_creator":"@silverguru22","twitter_site":"@silverguru22","twitter_misc":{"Written by":"David Morgan","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.themorganreport.com\/blog\/wilderness-of-mirrors\/","url":"https:\/\/www.themorganreport.com\/blog\/wilderness-of-mirrors\/","name":"Wilderness of Mirrors","isPartOf":{"@id":"https:\/\/www.themorganreport.com\/blog\/#website"},"datePublished":"2011-02-04T17:13:45+00:00","dateModified":"2018-06-10T10:58:18+00:00","author":{"@id":"https:\/\/www.themorganreport.com\/blog\/#\/schema\/person\/2f153b749f1b9c4e76eacf9ee3cc046a"},"description":"Wilderness of Mirrors","inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.themorganreport.com\/blog\/wilderness-of-mirrors\/"]}]},{"@type":"WebSite","@id":"https:\/\/www.themorganreport.com\/blog\/#website","url":"https:\/\/www.themorganreport.com\/blog\/","name":"The Morgan Report News","description":"Helping You Build And Preserve Wealth","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.themorganreport.com\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.themorganreport.com\/blog\/#\/schema\/person\/2f153b749f1b9c4e76eacf9ee3cc046a","name":"David Morgan","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.themorganreport.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/5580128866d1436555aa5bfafd8133d2?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/5580128866d1436555aa5bfafd8133d2?s=96&d=mm&r=g","caption":"David Morgan"}}]}},"_links":{"self":[{"href":"https:\/\/www.themorganreport.com\/blog\/wp-json\/wp\/v2\/posts\/570"}],"collection":[{"href":"https:\/\/www.themorganreport.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.themorganreport.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.themorganreport.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.themorganreport.com\/blog\/wp-json\/wp\/v2\/comments?post=570"}],"version-history":[{"count":1,"href":"https:\/\/www.themorganreport.com\/blog\/wp-json\/wp\/v2\/posts\/570\/revisions"}],"predecessor-version":[{"id":5787,"href":"https:\/\/www.themorganreport.com\/blog\/wp-json\/wp\/v2\/posts\/570\/revisions\/5787"}],"wp:attachment":[{"href":"https:\/\/www.themorganreport.com\/blog\/wp-json\/wp\/v2\/media?parent=570"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.themorganreport.com\/blog\/wp-json\/wp\/v2\/categories?post=570"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.themorganreport.com\/blog\/wp-json\/wp\/v2\/tags?post=570"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}