On the 28th of March, I sat down for an interview with New York
Times Best-Selling Author James
Rickards, and we mainly discussed risks to the global economy.
What I wanted to do is compare Rickards' asset allocation to my own suggested
portfolio for this year.
Right off the bat, Rickards noted that owning safe
havens is a must�preferably a smart combination of them.
I am personally getting interested in cryptocurrencies, specifically in
this new
one that has "Bitcoin" potential.
But most of all, I was surprised that a man who wrote four books about the
coming economic collapse is bullish on private equity.
From reading his work, I know that junior gold stocks are an asset class
he is extremely bullish about, especially considering his price target for
gold exceeds $10,000 per ounce.
I personally know�after having spoken with over 45 management teams in the
first quarter of 2017�that most of them will see a huge rise in investor
interest if gold surpasses $1,350.
What they are most concerned about is the lack of discoveries. There
hasn't been a meaningful one in over a decade, and these large-cap companies
have a ton of cash to "blow" on mergers�there is no other
alternative.
Five years of a brutal bear market have decimated cash flows for the
majors, but 2016 cleared all that out.
The largest producer and consumer is China, and they have an unending
appetite for gold.
The best strategy for boiling down which junior companies (and their lucky
early shareholders) will get to experience a surprising phone call from a
lawyer with a proposition to purchase is to look at the Chinese miners.
After you make a list of the cashed-up ones, the next thing to do is look
at recent history and strike any company that hasn't made a project purchase
in the past four years (which are most of them).
The last part of your strategy is to see which junior has a property that
makes perfect sense for a major to buy, and I've taken a look at the past six
years' worth of merger history. The conclusion is simple: the closer the
operations are, the greater the likelihood.
We've actually found a company that shares their deposit with China's
premier gold acquisitions miner!
The reason you probably haven't heard of it is because it started trading
on Friday, the 31st of March. The 2nd of April will be
its second trading day, and you can become part of the shareholders at the
basement level�that doesn't happen often.
This
company is chaired by none other than Tookie Angus, so if you've been
following Rick Rule and Stansberry Associates' favorite mining executives,
you'd know this very successful entrepreneur is ranked way up at the top.
What nobody�and I mean that literally�is daring to say is that for the
first time in eight years, it looks like the average guy is willing to take
on risks in the market.
Remember, this has been the second-longest bull market in history, but the
gains have remained to be shared only by the top 10% of the population.
The average person has had "2008 fever," and with the
"Trump wind" at his back now, you will begin to see the retail
crowd start to Google for the "top gold stock to buy. . ."
You have already done your homework, and in the coming months, as these
trend-chasing novice investors come in and bid up shares, your positions
should already be tightly held.
This can be even more profitable than the first six months of 2016, and this
company could be one of the biggest winners.
Disclosures:
1) Lior Gantz: I, or members of my immediate household or family, own shares
of the following companies referred to in this article: None. I personally
am, or members of my immediate household or family are, paid by the following
companies referred to in this article: None. My company has a financial
relationship with the following companies referred to in this article:
Kenadyr Mining Corp. I determined which companies would be included in this
article based on my research and understanding of the sector.
2) The following companies mentioned in this article are sponsors of
Streetwise Reports: None. Streetwise Reports does not accept stock in
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above is for informational purposes only and is not a recommendation to buy
or sell any security.
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of Streetwise Reports or its officers.
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Charts courtesy of the author
