Hard Assets in the “Soft Landing”

🛬Getting ahead of inflation. [Altucher Confidential] August 25, 2023 [WEBSITE]( | [UNSUBSCRIBE]( King: “The U.S. is about to confront a major reversal in monetary fortune. Prepare accordingly.” [Hero_Image] Hard Assets in the “Soft Landing” There is MASSIVE change happening within our company And I want you to [hear about this – from me]( – otherwise this new policy could blindside you. This has gone into effect immeditaly, so I want you to understand exactly what it will mean for you. [So please, watch this video for my full announcement.]( [Chris Campbell] CHRIS CAMPBELL Dear Reader, Let’s today turn our gaze to the grand confluence of powers that recently graced the Sandton convention center, a stone's throw from Johannesburg. From the 22nd to the 24th of August, the tapestry of global geopolitics was woven a tad tighter as the XV BRICS Leaders’ Summit unfolded. Now, to reiterate… BRICS – an ensemble of Brazil, Russia, India, China, and the host, South Africa – isn’t just a club of nation leaders meeting over tea. Nope. Over a hundred times they congregate in various forms, deliberating on everything from finance and diplomacy to women's rights and even sports. Yet, only once a year do the top brass – the crests of political hierarchy – come together. This was that grand occasion. The roll call this year was a distinguished one: China's President Xi Jinping, Brazil's President Lula da Silva, South Africa's very own President Cyril Ramaphosa, and India's Prime Minister Modi. But, of course, there was an empty chair – reserved for Russia's President Putin, who, due to a certain international warrant for his arrest, kept him in the Motherland. The Big Takeaway? For the first time since 2010, the BRICS circle has been widened. Come January 1, 2024, they’ll be officially extending a hearty welcome to Saudi Arabia, the United Arab Emirates, Egypt, Argentina, Ethiopia, and Iran, as they officially join this esteemed coalition. As the curtains rise on an expanded BRICS stage, one can't help but notice the fading shadow of the once-mighty petrodollar. After all, the entrance of Saudi Arabia in particular signifies a changing world order. For that, we turn to Paradigm’s in-house resource maven, Byron King, for his take. [Note: Alongside James, Byron will also be in Vegas at our Paradigm Shift Summit in October. Still sitting on the fence? [Perhaps this will persuade you]( Below, Byron leads us deep into the realms of mining and metals, offering his perspective on safeguarding wealth in this ever-shifting world… Where the dollar's value is ever on the shrink. Read on. New “WiFi Crypto” Token is Going NUTS! Only a handful of crypto investors know about this… But there’s a tiny, affordable device… That’s paid investors real crypto – every day, with zero work… Just for having a working WiFi connection! It sounds crazy, but it’s true… And [this 3:28 video]( explains everything. [Click here to view it NOW](. Get Ahead of Inflation [Byron King] BYRON KING The world is on the cusp of a reboot – a realignment, one might say – of cultural and political-economic forces. The current ossified global situation, all tied together with Western currency and banking, is about to change in a big way, and BRICS will serve, in a metaphorical sense, as a geopolitical icebreaker. That is, the new, expanded BRICS entity will clear a path for its members and the rest of the world to move up the development ladder. Think of the possible future of Africa, with a large whack of South and Central America as well. Or look at it this way. In the past, when underdeveloped nations produced something – minerals, energy products, agriculture goods, or some other commodity-type item – the output was always priced in dollars, usually with the number set on one or another exchange in London, New York, or other Western venues. And the producing nation could take it or leave it. But with the new BRICS approach to international trade and using that organization’s version of a currency unit, many goods produced in a developing nation will find price levels that are far more independent of Western manipulation. That’s the idea, anyhow. Meanwhile, with a BRICS unit in effect to facilitate trade, more and more of present-day world commerce will not require dollars to set prices, let alone to buy or sell stuff. And many dollars that are currently overseas, serving as the underlying means for transactions, will migrate back to the U.S., where those Federal Reserve units will contribute to domestic monetary inflation. In other words, what happens overseas won’t stay overseas. Because for over fifty years, the U.S. has routinely exported to the world the consequences of its inflationary domestic monetary policies. Now we – that is, we in the U.S. and related economies – are about to confront a major reversal in monetary fortunes. So, stand by for a breakout in persistent inflation. How to Remain Ahead of the BRICS Developments and Inflation Okay, inflation is coming. What’s your plan? Cash in the bank is always nice because you want to be able to pay the bills (and taxes, alas). But inflation will rob cash of purchasing power over time, and it’s just a question of how much you’ll lose every year. So, cash is a short-term salve, although having some feels good. Other standbys include real estate, but the adage of “location-location-location” is critical. And what happens to the price mechanism of, for instance, U.S. land when the dollar inflates? What does “value” even mean when that happens, certainly when it comes to buying or selling? And don’t forget about other “real” things, like tools, machines, and spare parts that may become quite valuable as global trade patterns shift, and some items become hard to find, if not unavailable in a transformed economy. This brings us back to hard assets like energy, precious metals, and related base metals critical to keeping the world running. Let’s Talk About Copper I’ll round this out by discussing a more base-metal idea, mostly involving copper. I say “mostly involving copper” because most copper deposits are poly-metallic; that is, there’s copper, plus (not uncommonly) associated amounts of gold, silver, and perhaps lead, zinc, molybdenum, and other elements. It all depends on geology and geochemistry. Copper has strong days ahead for all manner of reasons. Up front, I’ll say that sure, if there’s a near-term recession then the economy will slack off, and copper prices will fall; but on the other side of that, there’s exploding demand, coupled with absolutely baked-in future shortages and higher prices. At the basic level, consider one thing: about three billion (billion with a “b”) people worldwide have access to no or minimal electric power. [ALC] Eritrean town and market square; not a power line or light bulb in sight. BWK photo. Almost all of these souls live in developing lands like Eritrea (see above) or other similarly unprivileged locales across the globe. And just to string a few simple wires and light bulbs to these fellow earthlings will require immense volumes of copper. Indeed, and ironically, many places on earth with little or no electric power also happen to be areas where mining or other resource exploitation removes valuable products that ship out to the distant, developed world. So, you can get a feel for the resentment we see in the comments of future BRICS members. Meanwhile, the rest of the world is also on a development fast track, with everything you see in the YouTube videos, such as massive high rises popping up across China and sprawling urban landscapes from Mexico City to Lagos, Nigeria. And then throw in the developed world, with its focus on becoming “green” by taking gasoline cars off the roads and replacing them with electric vehicles (EVs). (And don’t fret; for every barrel of oil that the West doesn’t burn in its future car fleet, the developing world will find a use.) Along the foregoing lines, one figure I like is that your internal combustion vehicle has about 50 pounds of copper in it, give or take; it’s used in the alternator, wiring, etc. But add it all up, and it’s about 50 pounds. Now, take an EV apart, weigh everything, and get about 250 pounds of copper. This is for the traction motors, batteries, wiring, and everything else. An EV uses about five times as much copper as an old gasoline burner. And multiply that by tens of millions in terms of the projected output of new EV cars by the global auto industry in the years ahead. Right away, you can see that the world needs lots more copper and that copper miners have many good years ahead; well, many good years as long as they have access to copper resources and can mine ores, smelt them, and refine metal. And on this last point, you want companies with low levels of political risk. Opportunities In The Copper Space I should also note that the market has been bidding up the share price for strong copper companies. So even now, the charts are on the high side. But I believe there’s more upside ahead in the years to come. We’re early in this part of the copper cycle. You’re probably familiar with the names of a couple of the biggest big guys in copper. For example, there’s Rio Tinto Group (NYSE: RIO). At over $100 billion market cap, it’s global and diversified. It produces copper and many other metals, materials, and related products. Rio has a deep bench of technical talent and access to capital for operations and expansion. Then there’s Freeport McMoran (NYSE: FCX). This one is large at about $65 billion market cap. And it’s global, with many mines and various metals coming out of the facilities. Plus, many great people and access to capital. If you want a smaller company, look at Toronto-based Lundin Mining (OTC: LUNMF), with a market cap of about $7 billion. It has projects worldwide, in North and South America and Europe. It’s well run, with a substantial upside from a lower capitalization level. Finally, I’ll mention an advanced-stage developer that works in the copper space and is pioneering new technology in exploration and production, namely Ivanhoe Electric, Inc. (NYSE: IE). The market cap is about $1.6 billion, with a stellar list of projects in some of the best copper districts in the U.S. I won’t go deep into details, but this one is a rising star. Note that these ideas are not “official” recommendations. But I do follow the companies. If you buy, use limit orders. Always take advantage of down days in the market. And never chase momentum. As we confront a fast-changing global economy, remember that “real things" continue to make the world go round. And copper demand will play a significant role in both the developed and underdeveloped nations of the world. The days of “Nobody goes to Eritrea” are ending. That’s all for now… Thank you for subscribing and reading. Best, [Byron King] Byron King For Altucher Confidential Warning: Will “Bidenflation” Destroy Your Retirement? [James Altucher]( If you’re like most Americans, you’ve worked hard for decades to build your financial legacy. And now, as a result of Biden’s disastrous money printing policies, that’s all at risk. According to one top retirement expert, “Bidenflation” threatens to destroy your retirement and make your hard-earned savings worthless. That’s why you must take action right away to protect yourself… [Click here now to get the simple, step-by-step actions to survive “Bidenflation.”]( [Paradigm]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2023 Paradigm Press, LLC. 808 Saint Paul Street, Baltimore MD 21202. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. To end your Altucher Confidential e-mail subscription and associated external offers sent from Altucher Confidential, feel free to [click here.]( Please note: the mailbox associated with this email address is not monitored, so do not reply to this message. We welcome comments or suggestions at feedback@altucherconfidential.com. This address is for feedback only. 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