What’s coming for gold is big, but I actually see the monetary fuel for gold as the icing on the cake. While seeing a gold price over $3,000 is something I would actually prefer not to happen, we have to wonder what the world would look like.
The real reason to own gold and gold shares today, in my opinion, is that it’s fundamentally a “when” question – not an “if.” When looking at the collapse in discovery, high costs to mine it, and the global appetite for gold, especially coming from Asia, the real question is what to do when gold goes up.
When gold goes up… how are we going to position ourselves to profit?
For the biggest gains, you have to go to the junior gold companies, but the big warning for this space is that the majority of these companies are run by bad management teams, are not supported by long-term industry insiders, and are nothing more than a Vancouver scheme to sell inflated shares to the public.
I want us to focus on standing shoulder to shoulder with the ultimate insiders. Let’s remove the risk of the people. We are already speculating in a sector that has a reputation for both glory and disappointment.
When it comes to all the big names, like Jim Rickards, Rick Rule, Byron King, Nick Hodge, Marin Katusa, Frank Curzio, Doug Casey, and our own letter, Future Money Trends, we are all backing a few core management teams.
This is where you want to be in the gold sector.
Here is what happens when you take the speculation out of the management team and deep industry insiders and partner with a real business builder.
The chart above is of GoldMining Inc. (TSXV: GOLD & US: GLDLF). For the 2016 highs, it outpaced physical gold and the popular mining ETF, the GDXJ.
For every percentage point gold gains, GoldMining saw a gain 31 times higher. For the GDXJ, it was 4 times higher. Will it continue is something no one can predict, but what I do know is the people running the company are practically married to their shareholders and investors, like you.
- Reporting insider ownership alone is 25%!
- Institutional ownership is an impressive 35%.
This team has skin in the game and is over-delivering for investors on all fronts! Here is their resource growth over the last 5 years. It really doesn’t get any more impressive than this.
- 10.3 million ounces of gold (measured and indicated)
- 7.8 million ounces of gold (inferred)
The last offering, which was 3x oversubscribed, was at CAD$2.50.
Today, you can buy shares on the open market for less than CAD$2.00. In fact, shares have recently sold for as low as $1.68.
In our opinion, anyone looking for maximum exposure to the gold junior sector should seriously consider partnering with a team of legends, headed up by Amir Adnani, who many are calling the next Robert Friedland of our time.
To leverage your portfolio to the gold price and remove the speculation from the type of gold stock you own, consider shares of GoldMining (TSXV: GOLD & US: GLDLF).