Hold Gold Bet on Tin

Australia's top resource analyst delivers his big 2012 prediction...

Hold Gold
Bet on Tin

Why the smart money is about 
to flood into the tin market... and 
the ground floor way to ride the 
biggest bull of 2012

Dear Reader, 

It amazes me that resource investors always go looking for the biggest profits in the most obvious commodity markets – Gold, Copper and Iron ore. 

You can definitely make money from these resources – but the pickings are a lot slimmer because that's where all the investors are. The market quickly prices in everything that is known about the stocks competing for investment. 

You'll seldom find hidden value.

Well today I want to tell you a story about one of the more obscure commodity markets... and one of its rising stars.

This is a market that could make quick-thinking Aussie investors a lot of money in 2012. And the small firm I've had on my radar for the past couple of years could be the horse to back!

I want to be clear about what I've uncovered...
 

A major NEW bull market 
is on the cards for 2012

It's not the sexiest of all the metals. 

It doesn't have gold's "bling"... or silver's sparkle. 

But the point is... it's used in the soldering of practically every manufactured electrical good in the world – from smart-phones, TVs to digital cameras. 

And the company I want to tell you about today is sitting on nearly $2 billion worth of it.

I'm talking about TIN. 

And right now, global supply is in a major shortfall.

According to Bloomberg, "sales of consumer electronics will exceed $1 trillion for the first time this year, driving tin consumption higher just as stockpiles of the metal slump to a 33-month low." 

In other words, demand will outpace supply for a third consecutive year.

In my view, this sets up 2012 to be a barnstormer of a year for this important base metal.

As you can see from the charts below, tin inventories at the London Metals Exchange are near three-year lows. 

More importantly, the tin price has already begun to reflect how tight supplies are.

Last time tin supplies were this  low a year-long bull-run ensued

Prices could go much higher.

Indonesia is the world's second largest tin producer and the world's largest tin exporter.

But in February of 2012, Indonesia's tin exports were down 27% from the same time last year! A voluntary ban and heavy monsoon rains restricted exports.

As a result, tin prices are already up more than 26% in 2012. That's more than analysts (except myself) were forecasting. 

Now let me be clear: right now the price of this metal is only just starting to recover from last year's 50% fall. 

That means now could be the perfect time to buy into this market and position yourself to profit from a potential spike-up. 

The best way to find great commodity investments is to buy them when they're cheap and no one wants them. 

If you chase commodities that are rising in price, you run the risk of getting in too late – this is what investors tend to do in the more obvious commodity markets.

Of course, you can still make money that way. 

But with resource investing, you're either a victim or a contrarian.

Victims buy high and sell low. Contrarians buy what no one wants. And for that reason they almost always get in at a cheap price... 

There's no doubt tin is already rising. But based on my analysis of supply and demand tin is still very cheap.

And the company I've spent almost two years researching is sitting on A LOT of it...

The equivalent of 1 million ounces of gold

As it stands, this small, ASX-listed firm has one of the world's largest, highest-grade caches of tin in the world – 54,000 tonnes of it. 

I estimate this alone to be worth a staggering $1.8 billion – which is roughly the equivalent of 1 million ounces of gold. 

It's amazing – a TIN miner effectively strikes GOLD! That gives you some idea of the valuable resource I'm talking about. 

(What's even more amazing is that no one knows anything about this stock right now.)

But over the last 18 months they've been steadily adding to their existing tenements, and early results suggest an ADDITIONAL resource of between four and eight million tonnes of ore.

Without getting too technical, this essentially means between a possible 32,000 to 64,000 tonnes being added to the existing resource of 54,000 tonnes.

In other words the top end of the range would mean a near DOUBLING of the current resource.

In a market where the price of this metal is rising... can you imagine what that would do to the shares of this Aussie miner?

Well let me show you what I think could happen...

A 177% gain... from one stock?

On 27th January analysts at broking firm Hartley's profiled this firm, valuing it using a number of different tin price scenarios...

Using estimates based on the company's recent results and their tin project to date, they calculate the real value of these shares to be 62¢.

Today they trade at 27¢.

That's a potential 129% gain on today's share price.

Now that's a great return. 

But I think it could go higher still.

If the tin price goes up as far and fast as it did back in 2010, and this company confirms it's doubled its existing resource... I believe a 75¢ target price could easily be possible. That would be a 177% gain from today's prices – IF my research is accurate.

Now let me be clear. This figure is not just plucked out of the air to get you all excited about this company. I'm most excited about the resource here: tin.

I believe it's about to enter serious bull territory.

I've thought this since the back end of 2010 when I started researching this cracking little miner.

And as such I've spent a lot of time going through its books, meeting its people and running the rule over its operation.

Today, I want to make that research available to you.

Bottom line: I think the potential here is huge. And it's exactly the kind of opportunity I look to publish in my newsletter. 

But let's not get carried away.

My reason for writing is to help you position yourself to profit IF I'm right about this market and this firm. 

Yes, there's risk here. 

But in my view, it's a risk worth taking - you see, despite the strong fundamentals in the tin market, NO ONE'S giving this company any attention... yet. 

I believe they will in 2012.

When that happens, you will 
want to own these shares

Like I say, if you like, you can access my full research on the coming tin bull, and this cracking little Aussie firm's place in it. 

You can download this report right now.

But really, this is just the start of what I want to tell you about today.

Truth is... this is just one of SIX of extraordinary resource investing opportunities I'm tracking right now that could make you a lot of money in the next 6-12 months.

And that's in spite of everything that's kicking off in the US economy and the Eurozone.