The Coming Wave of Resource Nationalizations

Since sometime in 2006 we have had this theory of “The Coming Wave of Resource Nationalizations”. The latter has an “s” to impress upon you that we are talking about all natural resources in all countries. Not literally, but we believe it will be a worldwide sweeping event encompassing all classes of natural resources. It sounds scary, yet it will be akin to a depression

Back in 2006 our thinking was that such a wave could be brought about by higher metal prices as well as worsening economic and social environment. For metal prices, we loosely marked $50/oz silver and $2000/oz gold as potential trigger levels. We had also identified the period of “around 2010″ as a possible timeframe in which this process would initiate. Those were general parameters we set as ones to look for if this scenario were to unfold. Recent developments, such as the push for a “new global currency” lead us to adjust our thinking. Before jumping into it we want to make it clear that this is not an attempt to pass judgment on any individual, group, government or their actions. We’re simply trying to figure out what is likely to happen and its potential effect investment portfolios. More on that below, but first the “What? Why? and When?” of it.

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