The past couple weeks have been somewhat choppy for many vital resource stocks. The primary catalyst: worries that the US slowdown is only beginning and that it will hit global demand hard later this year and into 2009. To be sure, there are now clear signs the global economy is slowing down. And we’re already seeing demand for many resources decelerate, though absolute demand remains at elevated levels, especially when compared to previous cycles. Read More

Not everything was a winner. But year to date, the VRI Portfolio is up 28 percent. That stands in favorable contrast to the 1.3 percent and 7 percent gains scored by the US and global commodity index benchmarks, respectively, against which we measure performance.  Read More

Gold is the only financial asset that isn’t someone else’s liability. It’s also the only form of money that’s stood the test of the new millennia, as paper currencies have come and gone. And it’s the only form that’s reliably held its value over time: An ounce of gold still buys a quality men’s suit, just as it did in the days of Croesus. Read More

The slumping US economy is trickling into global financial systems, slowing growth worldwide. However, global demand for steel is still on a tear. And so are stocks of steel companies, particularly those with clear control over costs. Asia’s breakneck demand growth is still the primary factor driving steel. Read More

Two hundred ninety dollars a barrel: That’s the price point for crude oil that one study is calling China’s line in the sand--the point to which the country can continue to subsidize oil use without jeopardizing its paramount goal of robust economic growth. Such numbers are meant to be bent. But they’re also a stark reminder of how emerging Asia is rapidly supplanting the West in vital resources consumption. Read More

Farther out and deeper in: That’s where the world’s mining industry is increasingly being forced to go to feed voracious global demand for vital resources of all varieties. That means tackling a wide range of political challenges in a rising tide of resource nationalism. In some countries, the problem is simple kleptocracy. In others, it’s a well meaning attempt to jumpstart long moribund economies. Whatever the motivation, however, it means higher production costs and constant uncertainty about how much output a company will be able to bring to market profitably. Read More

This week, representatives from Canada, Denmark, Norway, Russia and the US are meeting in Ilulissat, Greenland. Their goal: resolve conflicting claims for oil and natural gas under the Arctic Ocean, the world’s last great untapped energy reserve. Read More

China, it’s profile already well established by its meteoric economic rise, has been the focus of even more headlines lately because of the recent disastrous earthquake in the Sichuan province as well as the upcoming summer Olympics in Beijing. As we’ve pointed out, China has been a major driver of global demand for vital resources and perhaps the biggest reason that commodity prices have remained in a bull market despite the weak US economy. Read More

It’s striking that, although investors understand the reasons behind the recent strength in metals and commodities (i.e., emerging market demand and problematic supply), they aren’t able to grasp this commodities cycle’s massive potential. The main reason is that few investors are willing to accept the big transformation that’s taking place in several emerging market economies, led by China and India. Read More

Dollar down, commodities up: That’s the simple mantra many investors practice. The equally trumpeted converse is that a real recovery in the US dollar would sound the death knell for vital resources. To be sure, the US dollar’s direction is important for commodity prices, particularly in the near term. From oil to copper and grains, most vital resources are still priced globally in US dollars. So when the US dollar rises against other currencies, commodity prices tend to fall. The opposite reaction occurs when the dollar rises. Read More