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Preparing Your Portfolio

I’m excited. I think a gold bull market is now truly drawing near. Whether it starts now, next month, or next quarter doesn’t really matter to me – what matters is being prepared.

What does being prepared for a gold bull market mean?

I can think of several things.

First and foremost it means having a portfolio with a plan. I talk about this regularly, so here I’ll boil it down. The key is to spread your bets. You may love explorers or adore takeout plays, but
in a new rising gold market you want exposure across the risk spectrum.

 Large producers with controlled costs for basic leverage
 Mid-tier producers with funded, organic growth for leverage-plus
 Single asset operators and developers for takeout potential
 Optionality plays: large resources that don’t make sense until gold prices rise, because these assets gain value disproportionately once they become economic
 Real projects building value: resources in the mine planning process that already made sense but that look better and better with a higher gold price
 Top tier explorers: whether pre-discovery or discovery growth, betting on top tier teams and projects gives the potential for those rare but oh-so valuable high risk, high reward returns

Second, you need an investment thesis for each stock. Are you going to take money off the table at a double? A triple? Are you going to average down if a broad market crash pulls the gold sector down? Are you going to sell explorers before or on good news, or continue to hold?


It’s unlikely you will stick to your plan in its entirety but it is nevertheless essential to have a plan, and one formulated before the madness begins. A level head now will have clarity that an excited or disappointed head will not have when gold really goes or a discovery doesn’t work or or or.

Third, I think it’s important to think about financings. This, however, is a big topic – the amount of money that will be raised once the gold market really starts and what that means for share prices, trade timings, and opportunity – and so I will tackle this topic next week.


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Newsletter

In her letter, Resource Maven explains what she is buying and selling, and why. Maven has bought into several of the markets best - performing stocks well ahead of the curve. She regularly identifies exciting new exploration opportunities and manages the inherent risk by selling some into speculative gains. And the mine builder and operator stocks that form the basis of the portfolio give strong, ongoing leverage to the rising prices of gold and silver. She has your precious metal bases covered.

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Thank you for the update. I am actually quite glad that you are flexible with your letters to enable you to get your readers the best information. And, I appreciate your offer to join the premium newsletter. I hope to continue to build my portfolio, with the help of your newsletter, to the point where I am able to take advantage of your offer and join the pp world in the not too distant future. I have really enjoyed your newsletter, read it with interest and have aligned my commodity portfolio with your recommendations, which has worked out very well. You are clearly a very trustworthy person, which is not always commone in the world of commodity investing. Thank yo for doing what you do so the small retail investor/speculator like me can have a better chance at success.

-RR (September 2019)

Thanks for all your hard work, but especially your honesty and integrity. I can feel your desire to take of us through your writing. As you have recently written, that is not always the case in this sector….I’m sure your new subscribers have no idea what they are in store for. I have almost doubled my portfolio since the lows in March. I would have done even better if I could have exited my positions when you recommended them, but I was overseas and unable to act. I was okay with it as I knew from experience it would bounce back. and boy has it AND ITS JUST STARTING!... After many years in the red, all but of a couple of stocks are in the green. The daily rise in my portfolio is unbelievable. And a lot of that is happening is because I trusted you. I’m afraid I’m going to need the benefits of your hard work and wisdom to once again help my family and because of all your hard work I’ll be able to if they need it. I can’t thank you enough for the sacrifices you make to make what you do possible. If your religious at all, you really are doing God’s work. You are making a difference in many peoples lives.

Blessings upon you and your family.

Sincerely,

PM

-PM (June 1, 2020)