Gold Shortage Coming

Both Ivanhoe (IVN) and Kirkland Lake Gold (KL) are smart bets in my opinion.

Why?

Because demand for gold is going up, and both of these stocks have a proven track record.

China is a growing economy and their thirst for gold jewelry is skyrocketing, but so is the demand for consumer electronics (which uses gold in the microchips).

The global demand for gold continues to grow. This is a supply and demand issue. There simply isn't enough gold to go around, but there are two Canadian companies which are plentiful with the stuff.

Nor are these the only gold mining companies I have invested in. There's about 20 different mining companies I have invested in, with many of them dealing with gold, silver, copper, rare earth metals, lithium, and basically anything that is useful for making either batteries or for electronics.

Because that is something else that people often forget. Our consumption of electronics goods continues to soar, globally, and those electronics need metals that are hard to find and mine.

Which means they end up being valuable and the mining companies extracting them from the earth are likewise profitable and worth investing in.

I am also invested in companies which deal in mining exploration, which means they are dealing with finding new places to mine such metals, and then sell their finds to the government or mining companies for a hefty profit. 

And like always, I only invest in those companies with a proven track record, and I am investing long term.

 

Energy Stocks

Algonquin Power (AQN) and Ballard Power (BLDP) are two energy stocks worth researching and investing in, in my opinion.

AQN has nice steady growth over the past 5 years, so definitely a strong contender.

You can see a blip from March 2020 for the start of the pandemic, but it had a very quick recovery.

This is a company which will continue to grow in my opinion, as they are expanding into renewable energy production and solar/turbine energy production is going to become a huge business during the next 30 years. Definitely a smart long term investment.

Nor are they limited by that. They are already a huge company that deals in both production, transmission and distribution of energy across Canada and the USA.

Ballard Power meanwhile is really banking on renewable energy. Hence the big spike in their stock price during the past year, followed by a calmer period.

BLDP as you can see has lots of room to grow, having gone from $2 per share 5 years ago and is now over $20.

I wouldn't be surprised if BLDP was worth $100 to $200 per share by the end of the decade.

Buying both of these stocks to me is a no-brainer. You buy both and you hedge your bets.

There are other energy stocks to consider, but I haven't seen any yet that are performing like these two.

Nor am I worried about BLDP's upward blip. That to me is a sign that this stock is ready to go even higher.

It will be interesting to come back a year from now or 5 years from now and see how well these stocks are doing.

I put my money where my mouth is. I bought both of these stocks, and I believe you should too while they're still affordable.

HAPPY INVESTING!

Drone Delivery Canada Corp = A Darling Stock for the Future

 I purchased Drone Delivery Canada Corp (FLT) back when it was $1.13 per share, but I suspect it will be worth a lot more by 2030 or 2040.

Drone Delivery Canada Corp is a tech / software company that makes drone delivery software and drones, and I foresee that this is the way of the future.

Just looking at their stock valuation, which was $0.14 per share back in July 2016 versus now when it is hovering around $1.36 or $1.37 per share, and you see that upward trend going on. When major delivery companies switch over to automated drones to make deliveries, cutting out most of their delivery staff, that is when I expect this stock to skyrocket.

Most packages are quite small and using drones to deliver the packages saves on fuel and personnel costs, and electricity and drones are relatively cheap.

Furthermore, Drone Delivery Canada Corp is already a $300 million company. I fully expect it will be worth over a billion in less than 5 years. Several billion by 2030.

You will note that the value of Drone Delivery Canada Corp has gone through two plateaus, but this doesn't worry me. I bought the stock when it was relatively cheap, and I would be quite happy to hold onto this stock until it is worth $50 per share - which I am confident it will eventually reach, although it might take 20 or 25 years to reach it.

At some point I might even buy more of FLT stock, but only after I have developed a well rounded portfolio of various diverse stocks.

Stock Tip - Pay Attention to the CDN-USD Exchange Rate

A VALUABLE STOCK TIP FOR CANADIANS

Only buy American stocks when the Canadian dollar is at par or above parity with the US dollar. (This usually happens when oil prices are really high.)

Let's say you buy $1000 worth of Google stock when the CDN dollar is on par with the US dollar. Then you wait 2 years, the Canadian dollar drops in value by 20%, but Google might go up in value by 20%. You sell it for 1000 x 1.2 x 1.2 = $1440 CDN thanks to the ever changing exchange rate.

So you just got a return of 44% for a 2 year investment in a stock that is pretty much guaranteed to go up.

However let's pretend you did the opposite... Let's say you bought the stock when the CDN dollar was down in value, and sold the stock when the CDN dollar was up in value and on par.

So 1000 x 0.8 x 1.2 = 960 CDN.

See the problem? Even though the stock went up in value by 20%, you still lost money because of the changing exchange rate.

And this is why Canadians should NEVER invest in American stocks unless the exchange rate is in your favour, and you should only sell when the exchange rate benefits you selling for a bigger difference.

Unless of course you like losing money even when your stock goes up. You'd have to be a bit soft in the head to not pay attention to the exchange rate.