On June 13th we profiled Equinox Gold (TSXV: EQX) for the dirt cheap price of CAD$1.21. It’s broken out with gold and is around CAD$1.35.
Please DO NOT CHASE a stock; be patient.
If gold breaks to the upside, in my opinion, EQX has a HIGH likelihood of ripping higher at a much faster pace than the physical metal. However, if gold doesn’t, you don’t ever want to overpay – especially for a micro-cap company.
Consider adding to your position at below CAD$1.38.
Yesterday (June 18th), we recommended Sprott Inc. (TSX: SII).
It’s hovering just over our suggestion price, and we consider this a phenomenal buy right now.
You’re going to get a safe dividend of nearly 4%, full exposure to the resource market, and literally the best people in mining and lending running the entire operation.
It’s a must-own for anyone looking for gold/commodity exposure.
In fact, if you don’t have the stomach for investing in natural resources, forget the rest and just own Sprott.
Consider accumulating shares of Sprott Inc. (TSX: SII).
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I don’t know if this is gold’s big break many have been anticipating, but I do know that both Equinox and Sprott are great companies with world-class management teams in a sector that’s been beaten up so badly that we can buy these great businesses for super cheap!
In order to sell high, you have to buy low, and this is certainly one of those moments for gold shares.
As for why you want to own the mining shares right now… EQX is the perfect example: in the last week, gold is up 1.4% and EQX is up 11%.
You can’t compare the two because one is a gold business and one is gold (real money).
***This is why it’s important to own the gold shares and not gold itself if you think it is going to make a big move higher.***
Imagine gold going to $2,600… that’s a double – it would be an epic run higher. But let’s be real, doubling your money isn’t going to change your life at all.
I can almost guarantee you, though, that if gold goes to $2,600, some of these mining shares are going to see 10x — or even 50x and higher — moves in their values.
Another favorite of ours, First Majestic Silver (NYSE: AG), is up 16% since the start of the month, while silver itself (which they mine) is only up 3%.
Recommendation: accumulate shares of First Majestic Silver (NYSE: AG).
Consider locking in profits for stocks that you’re up on and shifting into the resource sector slowly over the summer.
If I’m right again, this move could be one for the history books.
Best Regards,
James Davis
FutureMoneyTrends.com
Share Disclosure: I only buy the stocks recommended in this letter and will not sell any stock we’ve mentioned within 30 days of any email coverage.
93% Of Investors Generate Annual Returns, Which Barely Beat Inflation.
Wealth Education and Investment Principles Are Hidden From Public Database On Purpose!
Build The Knowledge Base To Set Yourself Up For A Wealthy Retirement and Leverage The Relationships We Are Forming With Proven Small-Cap Management Teams To Hit Grand-Slams!
Legal Notice:
This work is based on SEC filings, current events, interviews, corporate press releases and what we’ve learned as financial journalists. It may contain errors and you shouldn’t make any investment decision based solely on what you read here. It’s your money and your responsibility. We have not been compensated in any way, have no relationship to the company, and did not contact anyone from Equinox Gold to speak with them regarding our unpaid coverage. We have not been compensated in any way, have no relationship to the company, and did not contact anyone from Sprott Inc. to speak with them regarding our unpaid coverage. We have been previously compensated by First Majestic Silver for an agreement that has since expired, we currently own shares purchased on the open market and one hundred thousand options for past marketing agreements. The information herein is not intended to be personal legal or investment advice and may not be appropriate or applicable for all readers. If personal advice is needed, the services of a qualified legal, investment or tax professional should be sought.
