The following is a guest post by a fellow investor mobile guru whose interest lie within the mobile space, biotech, and precious metals.

The other sector that I have identified for high potential returns in the next two years is the Precious Metals/Minerals space. With the price of gold hitting new highs every day (over $1700 the week alone), it should be obvious that supply and demand is driving that market. What I find interesting is that a lot of the new finds announced by companies are telling us why this is really the case. Many of the announced finds are really historically low in terms of grades compared to just ten years ago or they are in such remote locations that production and startup costs are very high.

When gold was $500-800/oz, these discoveries would not have even been considered significant due to their not being economically feasible to mine. What that is telling us, as most precious metal experts have known for a long time, is that it’s getting harder to find gold and lower grades cost much more to mine. So even independent of demand, the supply side costs are driving prices higher.

Along these same lines are the Rare Earths and certain minerals such as Manganese. China for a long time has dominated 97% of supply of these critical components by not having to worry about pollution and having cheap labor, which enabled them to keep production costs to a minimum. This is changing due to a funamendal shift in attitudes in China.

Environmental concerns are going to be front and center going forward, which means not only are their costs going to rise dramatically, but their ability to export is going to drop considerably. As an example output of Electrolytic Manganese Metal, which is made from Manganese Carbonate, may drop by 50% in the next 2 years. Most people do not realize that Electrolytic Manganese Metal is a required component to make steel and without it you simply can’t produce it. There is no substitute. Does anyone really think that if China can not supply their own steel plants they are going to export any of this critical material to anyone else in the world?

From Manganese Investing news:

China produced 1.4 million tonnes of manganese last year, with a capacity to produce upwards of 2.2 million tonnes. According to a report from Metal Pages, due to shrinking ore bodies, the production of electrolytic Mn may fall off dramatically in the coming years. “China may lose 500,000-700,000 tonnes a year of metal capacity in the next 3-5 years if no new resources are found,” stated Zeng Xianbo the General Secretary of China’s Sodality of Manganese Plant Directors. This massive reduction in supply will result in higher prices, as well as moves by China to protect their resource.

This is just one example of many that are going to play out in the commodity markets over the next several years. With what will likely be more volatile times ahead, identifying the right investment situations can be the key to securing positive returns. With this in mind, it may be wise to keep your eyes on the mobile advertising/marketing and precious metals/specialty minerals spaces.