The Maven Letter goes out on Wednesdays, which means last week the letter went out the day Yellen announced there would be no rate raise. Gold immediately shot up.
It has slid some since, but that's ok. I can handle US$1,230 per oz. Heck, sideways from here for the rest of the year would still be way better than the last few years! And, of course, bull markets are never non-stop gains. Corrections or slowdowns are part of the process.
Also: gold equities have been less volatile than gold itself. Compare the following 30-day graphs of gold and the Junior Gold Miners ETF (GDXJ).
Miners are showing a more consistent uptrend than gold, especially in recent days. Is that value investors moving in and establishing positions, regardless of gold's daily gyrations?
I'd like to think it is. And I get some confirmation from conversations with mining company management teams, several of which have told me recently about overt interest from generalist funds and investors. The arrival of generalists will allow dedicated mining funds and folks to get out of some longtime positions and put funds to work elsewhere: with earlier-stage assets instead of mines, for example.
And money makes it all possible. Consider this list of deals and financings, just in the last few weeks:
That's a lot of action, and that is by no means an exhaustive list. Things are happening. The time to position is now.
To that, last week's Maven Letter skipped the usual news overview to concentrate on three new recommendations. One is already a double; the other is up 20%. Like I said, things are happening.
Since I can't give away subscriber secrets, this week instead of a snippet from the Maven Letter I'm sending something else your way: an invitation to the next Metals Investor Forum, which is happening on May 14th in Vancouver. This will be our third event and we are very excited to be hosting this top-notch conference just as investors are out looking for the right places to put their money in preparation for the run.
Dear Resource Maven Reader,
The mood in the junior mining sector is changing fast. PDAC 2016 had the smallest attendee count in four years but those that attended were more optimistic for a change. Importantly, some of that reduced attendee list included investors looking to buy. 2016 is shaping up much as I expected it to. Gold did indeed bottom in December and it’s currently the strongest asset class in the broad market. That’s impressive given the rally the S&P has recently sustained. The best time to buy will be within the next couple months, when the markets are just beginning to heat up.
As always, sector insiders are the most skeptical about this rally. Why shouldn’t we be? We’ve had our hopes dashed before. I think a new bull market has begun, but the long and brutal bear market we just went through has left its mark. The day will probably come when the bull becomes strong enough that a rising tide of buying “lifts all boats”. We’re definitely not there yet and I don’t think we will be for some time.
I also don’t think indiscriminate buying will ever again be the best tactic in the resource sector. Selectivity will be key. Find the best companies with the most competent management working on projects with the best risk vs. reward in the metals and regions that interest you.
And be there ahead of the crowd.
The best way to make money in this industry is to learn about great companies before the other guys. Then you reap your rewards when the street, the generalists and the newly minted “experts” find the deals you already know all about. Helping people achieve that edge is why I co-host the Metals Investor Forum.
Unlike other resource investor conferences, Metals Investor Forum brings you a curated list of companies followed by one or more of the newsletter editors that host it. It’s invite-only for companies. The number of companies we have to turn away because they don’t meet this vital criteria grows with every event. This ensures higher quality presentations by higher potential deals. Do the companies like this? Absolutely (the ones that don’t get turned away at least!). Why? Because the companies know the attendee list is curated too. You need an invitation to register and attend.
Join Eric Coffin of HRA Advisories, Brent Cook of Exploration Insights, Brien Lundin of Gold Newsletter, and Gwen Preston of Resource Maven at the Metals Investor Forum on Saturday, May 14th, 2016 in Vancouver.
Even though May is often seen as the beginning of the slow season, our May 2015 Metals Investor Forum was well-attended and got great reviews – such as this one from CEO.ca. Register now to ensure that you won’t miss out.
Brent, Eric, Brien, and Gwen have great track records of finding success stories, formed during market climates such as this one. These newsletter writers find success by vetting the management, project, commodity, jurisdiction and financials of every recommendation.
For this event, they are assembling a great selection of the companies they are most excited about. Our variety of speakers ensures there’s something for everyone – whether you’re a gold bug or a believer in the project-generator model.
The Metals Investor Forum provides you with the opportunity to actively engage with your favourite newsletter writer’s top picks. You’ll get to meet the companies’ executives in person, so that can you ask hard questions and really get to know the people managing your investment dollars firsthand.
Learn their stories before the market realizes just how much potential these companies offer.
Click Here to Register Now!
The Newsletter Writers
The Metals Investor Forum was founded to unite the expertise of four of the best newsletter writers in the mining industry:
Brent Cook, editor of Exploration Insights, is an independent analyst with 30 years of experience as both a field geologist and project and mining sector analyst. His experience runs the gamut from early stage target definition to resource evaluation and valuation. He’s worked in over 60 countries on a huge range of projects and continues to act as an advisor to companies and investment funds in addition to writing Exploration Insights. He’s been joined by Joe Mazumdar who adds years of sell-side analysis of larger mining companies and his own field experience to the mix.
Eric Coffin has been publishing HRA Advisories for 20 years; this has given him the experience to identify market trends early and to understand exactly what a company needs to be successful. Thirty years of mining sector experience, from joint ownership of an exploration consultancy to sector wide data analysis and company specific advising on M&A, project selection, financing and market awareness give Eric the background to know what works.
Brien Lundin serves as publisher and editor of Gold Newsletter, the publication that has been the cornerstone of precious metals advisories since 1971, and as the host of the annual New Orleans Investment Conference, the oldest and most respected investment event of its kind. As editor of Gold Newsletter, Mr. Lundin covers not only resource stocks, but also the entire world of investing, from small-caps of every type to macroeconomics and geopolitical issues that ultimately affect every investor.
Gwen Preston launched Resource Maven after spending almost a decade writing about resource investing, most of it as a senior writer at The Northern Miner. Her subscribers benefit from the first-hand knowledge that she developed through years of visiting projects and interviewing geologists, analysts, and management teams.
Click Here to Meet These Newsletter Writers!
Join other well-educated investors, company management, brokers and analysts and of course Brent, Eric, Brien, and Gwen at an event designed to provide attendees with the most up-to-date information available. Short corporate presentations and ample networking time provides the perfect balance between information and interaction. Come see for yourself on May 14th!
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.
The change is terrific for two reasons: it's current and concise. I suspect it really isn't that much harder for you to do since you always have opinions on the companies anyway. For me it provides current assessment without having to wait for an occasional update.... Another comment on your service is that you cover way more companies than I want to invest in but that provides me with a selection. I've always considered advisors as desperately needed filteres in the dog eat dog investment world. Keep up the good work
BTW - I really enjoy reading your newsletter - very comprehensive and you do an excellent job of integrating a macro perspective into your analysis.