Wall Street Unplugged - Your Best Source For Finance, Investing & Economics

“There are two certainties when it comes to resource investing…”   On today’s episode of Wall Street Unplugged, we unveil a junior miner that's molded its entire business model around these two certainties… and how to profit from them.   The first certainty you probably know:   The resource market is cyclical.   When supply and demand imbalances occur, the resource sector is slow to react. This lengthy lag time creates massive price swings incomparable to other markets.   The second certainty, on the other hand, is not so obvious...   When bear markets occur, the majors significantly underinvest in new assets.   As commodity prices fall into bear markets, the major players in the industry (the multi-billion dollar mining firms) fail to do what they’re typically good at…   Buying resources.   Instead, these firms go into "protection mode." They stop investing in new projects... cut exploration costs… and primarily maintain their balance sheets. Some, depending on the bite of the bear, even brace for bankruptcy