To give our readers deeper insights into investments by way of equity financings, and flow of capital in natural resources over the past half-decade, we created a chart that shows total equity capital dollars raised (plus number of deals) for gold, copper, uranium, lithium, and oil & gas.
But first a word from our sponsor: Sprott’s new Resource Exploration Development Private Placement Limited Partnership (RED LP).
The RED LP is a private placement-focused fund that distills Sprott's experience, access, and private placement origination capabilities into a single investment vehicle.
The primary focus of the fund is to secure private placements in publicly-traded natural resource companies. For those of you interested in investing in private placements, we invite you to visit the RED LP micro-site to learn more about the fund, as well as private placement investing in natural resources.
Now, onto the data.
As you can see, in the past five years, gold has far outpaced the other listed industries, while uranium has steadily increased as the metal has gained attention.
It's important to note that past performance does not indicate future returns. It will be interesting to see how these trends shift in the coming years.
Past performance is no guarantee of future returns.
An investment in a private placement involves a high degree of risk and is not suitable for all investors. Private placements are highly speculative including the complete loss of principal and lack of liquidity.
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Generally, natural resources investments are more volatile on a daily basis and have higher headline risk than other sectors as they tend to be more sensitive to economic data, political and regulatory events as well as underlying commodity prices. Natural resource investments are influenced by the price of underlying commodities like oil, gas, metals, coal, etc.; several of which trade on various exchanges and have price fluctuations based on short-term dynamics partly driven by demand/supply and also by investment flows. Natural resource investments tend to react more sensitively to global events and economic data than other sectors, whether it is a natural disaster like an earthquake, political upheaval in the Middle East, a pandemic or release of employment data in the U.S. Low priced securities can be very risky and may result in the loss of part or all of your investment. Private funds may have limited liquidity and you may not be able to exit a private fund investment when you wish, dependent on the limited partnership agreement. In some cases, the fund may fall quickly in value. Investing in foreign markets may entail greater risks than those normally associated with domestic markets, such as political, currency, economic and market risks. You should carefully consider whether a fund trading in low priced and international securities is suitable for you in light of your circumstances and financial resources. Sprott Global, entities that it controls, family, friends, employees, associates, and others may hold positions in the securities it recommends to clients, and may sell the same at any time.
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