Natural Resource Investing Sprott Global Resource Investments Ltd

Post on: 5 Июль, 2015 No Comment

Natural Resource Investing Sprott Global Resource Investments Ltd

With the exception of the air you breathe. everything you use in your daily life is made from raw materials that are either grown or mined. The chair you are sitting on, the computer terminal you are viewing, the fiber optic cable bringing you this feed – all are products of agriculture or mining, the most basic of all industries. While other industries come and go, efforts to extract the earth’s natural resources have been in existence since the beginning of mankind and will continue through its destruction. As the population of the world expands, so does society’s need for natural resources. Unfortunately, most resources are non-renewable – once a barrel of oil is refined and burned, it is gone and must be replaced by a new barrel of oil. As the easy discoveries are exploited, new supplies are more difficult and expensive to locate. It is in this environment that both opportunity and risk are created. It is also the environment in which Sprott Global Resource Investments operates, managing this trade-off between risk and reward for our client base.

Resource companies range in size and risk from multi-billion dollar producers to junior exploration companies. For obvious reasons, the share prices of the large capitalization producers tend to move in tandem with the underlying price of the commodities that they produce. In theory, the shares of the smaller exploration companies should be less sensitive to commodity price movement, since they have no reserves. The share prices of these companies are driven more by exploration potential and results. When investing in the resource sector, it is important to differentiate between the various categories of companies, making sure that you are selecting investments in the appropriate sector and risk category to accomplish your objective. The brokers at Sprott Global can help you assess this risk.

Sprott Global focuses on the natural resource sector for three reasons. First, it is an investment sector our company’s founder has been involved with for over 25 years. Second, we believe we can provide you with the greatest value by specializing in one sector and being the best in that sector. Finally, management believes carefully selected exploration mining stocks can lead to better than average returns, provided you are willing and able to accept the higher risk inherent in these stocks.

Every year our geologists and Investment Representatives make field visits to numerous properties that have been identified as having potential. Explore the Site Visits section of our website for indepth coverage of our far-flung travels.


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