Commodity Stocks And The Unusual Factors We Face At this point in history, the resource cycle equation is a bit more complex. Accordingly, your decision to invest in commodity stocks should be driven not only by the natural cycle and any undue influence that can affect price, but also other realities that can affect the cycle. Specifically, we now have to strongly consider the role of emerging markets. Key nations around the world are modernizing, and their citizens are upgrading their quality of life with products and services that require resources. The United States used to be a point of reference, as it was the largest consumer of commodities. This is no longer true. Countries like Russia, China, India, and Brazil are expanding infrastructure and upgrading lifestyle. The heightened demand, indeed voracious appetite for natural resources, has blown demand way past the steady requirements that allowed for the typical cycle. These days, the standard expected glut of raw materials and commodities that would ordinarily put some producers on the sidelines is not so forthcoming. Consumers are raising their hands to request resources faster than they can be produced. As just one example, China used to mine rare earth metals very inexpensively as a mine by-product, and so it kept prices low and explorers and developers of such mines out of business. Today, China has significantly reduced exports and now consumes a large amount of the REEs it produces. On top of billions of additional people now wanting gadgets with REEs in them, the number of uses for REEs is skyrocketing. They are now critical to a number of consumer and military items. Uranium shortages in light of the explosion of nuclear power are yet another example. The Japan sell-off is short-term, making them some of the best stocks to buy now. Commodity Stocks And The Manipulative Factors We Face To add to the complexity of investing in commodity stocks, there are still other factors that weigh in. Sometimes commodities will undergo price suppression for political reasons, such as elections. Friends of the Federal Reserve, such as J.P. Morgan Chase, may engage in boundless naked short-selling of silver, using this “paper†silver to artificially beat down silver prices and prop up the dying U.S. Dollar. Central banks may sell gold to flood the market with supply and ratchet down escalating price increases. These machinations will not ultimately prevail, but they do muddy the waters and lengthen the timelines. This calls for expert guidance when investing in commodity stocks and resolve to win big.