Monday, January 19th, 2026
How To Get “P.A.I.D.” From Greenland’s Mineral Rights: The Tip of the U.S. “P.A.I.D.” Iceberg
Recently, I discussed “How To Get “P.A.I.D.” From The Recent U.S. Takeover of Venezuela.” In that “WIZ” DAILY JOURNAL article, I suggested investing in COMMODITY PRODUCERS since they will be the ultimate beneficiaries of consolidation in the OIL and MINING industries. Fewer suppliers mean less competition, which should give producers more control over wholesale prices.
To be clear, I was not opining on the “LEGALITY” or “MORALITY” of that event…
From what I can discern, most world leaders agree that something needed to be done. Whether or not this was the “RIGHT WAY” to do it is up for debate, which is outside my purview as an trader/investor/investment analyst.
That said, this situation is far from over…
In fact, it has only just begun!!!
Regardless of how you or I or anyone else feels about, it is going to have repercussions that radiate around the world and decades into the future…
As traders/investors, YOU, ME, the “BELOVED” ATWWI FAMILY should factor that into our portfolio decisions even if we “STRENUOUSLY” object to the manner in which it came about.
RISK Management
Making a portfolio “ADJUSTMENT” to this event is not the same thing as “PROFITEERING”. MANAGING RISK is a core tenet of portfolio construction. You may disagree with what occurred while making “ADJUSTMENTS” in response to it to MANAGE RISK at the same time.
From a FINANCIAL perspective, I view this no differently than responding to previous “BLACK SWAN” events such as the CORONAVIRUS PANDEMIC. Whether or not the COVID-19 outbreak was an intentional act or a horrible mistake is irrelevant from an INVESTMENT perspective. The bottom line is that it happened and ignoring it won’t change the way in which it may affect our portfolio(s).
That is why I advocate taking a “PROACTIVE” approach to these types of events. This is not profiting from someone else’s misery. It is MANAGING RISK to protect your assets from a new variable that previously did not exist. In that regard, this is no different than HEDGING your portfolio against other GEOPOLITICAL events that can change longstanding relationships among and within asset classes.
A New “THREAT”
Now, a new “THREAT” to the GLOBAL COMMODITY markets has emerged. The White House has stated its desire to wrest control of Greenland’s extensive METALS and MINERAL RESERVES “BY ANY MEANS NECESSARY”, including MILITARY FORCE if a FINANCIAL deal cannot be made.
For the record, many object to “FORCIBLY” taking assets from a country with a “LEGITIMATELY” elected leader that poses no direct “THREAT” to the United States.
In that respect, the Greenland “SITUATION” is quite different from the circumstances that led up to the Venezuela incursion.
Many, hope the “TAKEOVER” of Greenland doesn’t happen, but I’m NOT going to ignore it for that reason. If the U.S. gains control of Greenland’s most valuable COMMODITY RESERVES, then that will trigger “REPERCUSSIONS” in the GLOBAL FINANCIAL markets for years to come.
Actualize/Monetize the Sector
In that case, having exposure to METALS and MINERALS in our portfolio(s) is one way to HEDGE against INFLATION. Those materials are integral to the production of a wide array of CONSUMER and INDUSTRIAL products. If the cost of acquiring those materials increases, so too will the price of the products that use them.
The easiest way to do that is to own shares of a mutual fund such as the State Street SPDR S&P Metals & Mining ETF (XME). The fund’s objective is “to provide exposure to the metals & mining segment of the S&P TMI, which comprises the following sub-industries: Aluminum, Coal & Consumable Fuels, Copper, Diversified Metals & Mining, Gold, Precious Metals & Minerals, Silver, and Steel.”
The fund’s assets are currently allocated 32 percent to steel, 20 percent to coal & combustibles, 16 percent gold, 9 percent aluminum, 5 percent silver, 5 percent copper, and 13 percent diversified metals and mining.
Recently, the fund’s share price INCREASED 10 percent as Wall Street immediately recognized the implications of the Venezuela “TAKEOVER”.
Many think the White House will bow to international pressure and back away from its “THREAT” to use MILITARY FORCE to obtain Greenland’s HARD ASSETS…
In that case, this fund could just as quickly give back the gain(s) that it recently generated…
HOWEVER, if the Trump administration makes good on its promise to obtain those assets “BY ANY MEANS NECESSARY”, then the recent gain(s) could just be the tip of the U.S. “P.A.I.D.” ICEBERG!!!
PEACE & BLESSINGS,
Kenneth Reaves, Ph.D.