Thank you for your interest in participating in the Commodity Discovery Fund. Very simple to join, and possible upwards of € 50,000.
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We will sum up briefly here why that could be interesting:
1. Take advantage of commodity discoveries
In 2009, 2010, and 2016 we achieved record returns thanks to our unique investment strategy. Investing in relatively small but
undervalued exploration companies that discover commodities/metals creates
value. This may include precious metals (gold, silver, platinum), base metals
(copper, nickel, zinc), or other raw materials such as uranium, diamond, and
phosphate. Exploration companies that make a significant discovery are almost
always taken over by larger mining companies in search of new reserves, often within a
few years. We call this form of investing “Discovery Investing”. Due to the success
of this strategy, a company in our portfolio has been taken over on average
every quarter in recent years. See the full list of takeovers here.
2. Correction of commodities seems (almost) over
"Buy low and sell high" is particularly
important in the commodities sector. After the Lehman crash at the end of
2008, we realized almost 90% gross returns, two years in a row. This was a successful period was followed by a long correction in our sector between 2011 and 2015, which caused the prices of
many listed (precious) metal companies to fall by 50-80%. After an initial recovery in 2016, another negative period for commodities ended during the Corona-crash of March 2020. Oil prices even dipped into negative territory shortly. Our fund has doubled in size during the start of a more serious recovery in recent months. Judging by historical patterns, we expect a further recovery in the coming years as most commodity companies are still valued very low.
3. The era of scarcity has begun
Since 2000, there has been a growing awareness
that many metals, in particular, are rapidly becoming scarcer. Mainly due to the strong
economic growth of the BRIC countries and large infrastructural investments, the demand for almost all metals has increased quickly. Due to global prosperity development and the growth of the
middle class from 1 to 3 billion people, the first
structural shortages of raw materials are imminent. A study by the US Geological Survey
shows that for a dozen metals, production can no longer keep up with demand.
Investing in companies with undervalued (precious) metal projects now gives
a good outlook for healthy future returns. Over 800 wealthy foreign investors have preceded