I'm Loving This Inflation!
I know a lot of you might not feel the same way, but I’m absolutely loving this inflation. To be honest, you really should be too…
Because my colleagues and I have been warning about it since last spring. And we’ve been telling you how to profit from it the whole time.
The New Gold
As our politicians’ response to COVID hit, we started to see shortages all over the place. But the place the majority of us noticed them the most was at the grocery store.
And early last May, I warned you that those shortages were only going to get worse and those increasing prices we were paying for food were only going to keep rising.
I took a good ribbing for the title of the article, “Meat Is the New Gold,” but if you take a look at the numbers, meat has gone up in cost more than gold has since then.
The price of physical gold is up about 3.8% since then. Poultry prices (the ones we pay at the store) are up 4.25%. Beef prices are up 9.69%. And pork prices are up 9.78%.
Granted, it’s a little tough to invest directly in meat unless you’re playing the futures market.
But there are a lot of companies out there that produce meat. And they’ve outperformed gold since I wrote that piece too.
Tyson Foods (NYSE: TSN) is up 35%. Pilgrim's Pride (NASDAQ: PPC) is up 32.32%. Brazilian frozen protein producer BRF SA (NYSE BRFS) is up 28%.
Why? Because the products they sell are going up in cost and we’re going to buy them no matter what.
Hard Assets for Hard Times
I also suggested you get yourself some exposure to hard assets. Those are what they sound like: assets that are hard and that you can hold.
I recommended a few real estate investment trusts (REITs). Those are companies that own assets and pay at least 90% of their pretax profits to investors in the form of a dividend.
I didn’t recommend all of them, however. You see, there are a few REITs out there that specialize in soft assets that you can’t hold.
Like mortgages. They take out loans to buy mortgages and make money off the spread between the interest rate they pay the bank and the interest rate the people holding the mortgages pay them.
What I suggested were REITs with physical assets: real estate, buildings, factories, even cannabis farms.
I told you how the majority of my wealth is tied up in our family farm but that we have no intention of ever selling it. Farmland prices in Indiana (where the farm is) hit all-time highs this June.
But for those who couldn’t afford to buy a whole farm, I gave the choice of investing in a REIT that buys lots of farms: Gladstone Land Trust (NASDAQ: LAND).
Over the past 12 months, Gladstone is up 81% and has paid out over $25 million in distributions.
A Farm of a Different Color
But that wasn’t the only kind of farm I helped you get a stake in. I also told you about my absolute all-time favorite REIT investment. It also happens to be my all-time favorite cannabis stock too.
It’s a company that owns the means of production for a large chunk of the U.S. medical cannabis industry. It doesn’t grow cannabis or process cannabis or even sell cannabis.
But since 2017, its returned shareholders a 1,200% gain and paid out BILLIONS of dollars in cash distributions, to boot.
And since I told you about it as a hedge against inflation just this past April, it’s up over 50% and it’s paid investors total distributions worth well over $122 million.
I also tipped you off to a REIT that owns the most extensive fiber-optic cable network in the country. It’s vital to 5G, and those are hard assets that do well in inflationary times.
That one’s up 35% and just got a premium buyout offer from a larger operation.
And there was the REIT that was paying investors every time a package left an Amazon warehouse. It’ll be paying out a total over $1.7 billion this year to shareholders. And its stock price is up 36%, too.
Are You Loving This Yet?
So maybe now you understand why I say I’m loving all this inflation. I was ready for it. And I’m profiting from it.
But I hope you are too. I sincerely hope you took my advice and got yourself exposure to some hard assets before the real pressure started driving prices ever higher.
And if you aren’t loving this inflation because you didn’t get prepared for it, fear not. One, it’s not over. And two, there’s still time to profit from it.
Meat may be the new gold, but the old gold is starting to look like it might make a comeback in a big way as our fiat currencies continue to afford less and less.
So today, I’ve got another company for you that should do well in this high-inflation, low-growth environment we seem to be cruising full-steam-ahead towards.
And I’ll even throw in a few bonus opportunities at the very end. But for now, let’s talk about that old gold: gold.
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If You Can’t Beat Them…
I’m sure you’re familiar with the old expression “If you can’t beat them, join them.” And so is this company…
You see, one of the most prolific gold discoveries in recent times was made by a company called K92 Mining. The site is in the Kainantu region of Papua New Guinea.
Back in 2017, K92 was a tiny penny stock. But then it announced its results at the Kainantu site, and today its shares cost about 10 times more than they did back then.
Well, those gains are gone and K92 isn’t likely to deliver another 1,000% gain anytime soon. But there’s another company that didn’t beat K92 to the site but is joining it now.
Don’t get me wrong. This isn’t some proposed merger or something. This other company has rights to explore, develop, and mine a site right next to K92’s prolific discovery.
It’s called Kainantu Resources and it trades for a few cents on the Canadian Venture Exchange (CVE) under the symbol KRL.
It’s trading down where K92 was before it announced that major discovery. And it’s got an adjacent parcel that could hold an equally pure gold deposit and a whole lot of copper too.
The copper would just be icing on an already sweet cake, however, if Kainantu can show that it’s got a big vein of gold under its site.
But that’s the thing. It isn’t sure. Signs point to yes, but the company has yet to prove the reserves.
So it’s a very speculative play. But it’s right next door to K92’s profitable mine. And that stock shot up from around $0.30 to well over $7 before pulling back a little and settling around $6.
Kainantu could follow the same trajectory if it’s exploration and surveys are successful. That’s why I’ve got a small position in the company myself that I’ve been building for some time.
And that’s why I think you might want to consider it as well.
More Great Neighbors
But I promised a bonus and I’m not one to make promises I can’t keep. So here it is. Or here they are, to be technically proper:
My colleague Luke Burgess has forgotten more about mining and mining stocks than most analysts will ever know. And he’s keyed into five gold miners that have a similar setup to Kainantu.
They’re still small. They’re still unknown. And they’re still incredibly cheap.
But they’ve got mining and exploration sites right next to a company that hit a massive gold strike earlier this year. And as Luke likes to say, “Gold doesn’t pay attention to fences and borders.”
Now, Luke had actually already alerted his investors to the original company just before it struck paydirt. And he helped them cash out a 200% gain in just a few weeks on that one.
And he sees the same potential in these five miners that he saw in the OG that helped his investors double their money twice over.
So I’ve asked him to share a presentation he made outlining the companies and detailing their operations.
In it you’ll find out about the prolific find, the adjacent sites, the incredible setup for early investors, and how to get a piece of the action before it’s too late.
And I say “before it’s too late” because once these companies start reporting their survey results and investors start realizing they’ve got the gold, they’re all but guaranteed to run up a few hundred percent too.
And I’ll be back later this week with a few more ways for you to protect your profits and upgrade your gains.
To your wealth,
After graduating Cum Laude in finance and economics, Jason designed and analyzed complex projects for the U.S. Army. He made the jump to the private sector as an investment banking analyst at Morgan Stanley, where he eventually led his own team responsible for billions of dollars in daily trading. Jason left Wall Street to found his own investment office and now shares the strategies he used and the network he built with you. Jason is the founder of Main Street Ventures, a pre-IPO investment newsletter, and co-authors The Wealth Advisory income stock newsletter. He also contributes regularly to Wealth Daily. To learn more about Jason, click here.
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