The vast majority of placer gold nuggets that are eventually acquired are generally small, even grain-sized. It is now rare to find large gold nuggets and it has even been said that a 5 ounce gold nugget is as rare a find as a 5 carat diamond. Why? The big nuggets have all been mined and there is increasingly less virgin territory to mine which could result in large nugget discoveries. From a fixed commodity asset like gold, with an increasing demand from a larger and larger population, this is quite understandable. The natural resources of precious metals and gemstones by their very definition should increase in both real and monetary value based on population growth, cultural demand, and difficulty in obtaining these resources.
As financial farmers we then need to ask ourselves, from a utility and scalability standpoint, what investments do not necessarily have the constraints of a physical resource, yet provide similar increasing returns related to population growth, cultural demand, and difficulty in obtaining/creating these resources? I would argue the next gold rush is, and already has been, in the form of the internet, pharmaceuticals, and portable technology such as mobile phones, tablets, and to an increasing use smart watches. I see these three particular areas as having tremendous long-tail growth for anyone planning to Invest Like A Farmer; their respective scale and utility is nearly unparalleled. Gold, however, still has the timeless visual allure of a pure element, remains difficult to obtain, and has acted for thousands of years as a portable store of wealth. I have no reason to doubt the merits of this trend to continue.