SPDR Gold Shares (NYSE: GLD), the exchange traded fund for gold, is up nearly 2.50 percent for the last week of market action. United States Oil (NYSE: USO), the exchange traded fund for oil, is up nearly 3 percent for the last week of trading (chart below). Chaos around the world has investors heading for the sanctuary of natural resource securities. That is bullish for the sector, ranging from global giants like ExxonMobil (NYSE: XOM) and Goldcorp. (NYSE: GG), the two biggest, to small caps that have the potential to reward investors seeking high growth such as Mondial Ventures (OTC: MNVN) and Premium Explorations (OTC: PMMEF).
This is an investment trend that is sure to continue!
Tension in the Ukraine has sent oil and natural gas prices higher. The situation in Africa and The Middle East has contributed to that, too. Big Oil firms such as Royal Dutch Shell (NYSE: RDA-A), the world’s second largest, and Occidental Petroleum (NYSE: OXY) are selling off assets. Many major energy firms are concentrating on production in North America due to the political instability and economic security around the world.
That makes small caps like Mondial Ventures that is operating in the Texas oil country even more appealing.
It is the same with gold. When there is upheaval in the world, the price of gold rises. Gold and silver have always been traditional safe haven holdings. As with energy, there is unrest in gold producing areas in Africa.
From this, small caps like Premium Exploration becomes more attractive due to its holdings in Idaho.
There have been many previous articles on this site detailing the appeal of natural resource stocks. In the sector, there is a wide range of securities. Exchanged traded funds such as SPDR Gold Shares and United States Oil offer exposure to a wide range of assets. Conglomerates operating around the world like ExxonMobil and Goldcorp. are very attractive. There is no more attractive natural resources market now than North America, which makes Mondial Ventures for oil and natural gas and Premium Exploration for gold alluring, too.