Time to Take More Risk

Written by Gerardo Del Real
Posted July 6, 2020

Gold is ready to break out to all-time highs, and the market is not only rewarding success with the drill bit, it’s starting to reward potential success with the drill bit.

In some cases, the market is rewarding newer companies looking for world-class assets with market caps many multiples over companies that already have world-class assets. That presents an opportunity.

Gold closed the second quarter on a high note and now looks primed to take out all-time highs in U.S. dollars.

Which means both the newer companies with bloated market caps and the companies with economic and robust assets that have yet to outperform will do very well. But it’s stock-picking time if we’re going to maximize gains in this cycle. 

Last week I told you it was time to take more risk. This week I’m telling you it’s time to take more risk by shifting a little capital from multi-baggers to laggards.

What to sell and what to buy? That’s a matter best addressed in Junior Mining Monthly and Junior Mining Trader.

Which brings me to my next point. If you’re reading this it’s because you’re interested in the space and making a few dollars from the metals space. 

If you’re looking for research to help guide your due diligence efforts, Outsider Club Founder Nick Hodge has put together a roster of editors and services that provide options that cover the spectrum of the speculative landscape from crypto, pot stocks and defense stocks, to tech, metals, trading, etc.

If you haven’t already done so now is the time to invest in research to help guide your speculative ideas. 

Whether you’re sector-agnostic — though there’s heavy precious metals exposure — or you want access to some of the best private deals in the metals space, Nick’s Notebook is the best private placement newsletter in the business. 

Nick’s access to deal flow early in a company’s history — sometimes while the company is still private — has helped deliver triple-digit gains routinely during the bear market.

The past couple of weeks have made it clear that triple-digit wins are soon going to become quadruple-digit wins on a regular basis. If you think you run a better private placement service, offer access to real deals, and have the numbers to match, send in the details.

As for the higher risk, higher reward exploration stocks that have been neglected, battered, bruised, and left for dead? Well, many of those will lead the gains in this cycle, and while Mr. Hodge has a healthy dose of those in his services it’s what I do exclusively.

The explorers looking for the next discovery, those that are already on to one but the market hasn’t yet realized it, the companies that are on the verge of a drastic re-rating yet sit flat because the market has a limited attention span; these are the companies that will lead the next surge higher. 

Several are already up over 100%. I wrote a check for a company a week ago and that has nearly tripled (damn right I eat my own cooking) yet is still down over 40% from the original buy price.

That won’t last long. It’s going much higher. By the time everyone realizes it, that company will be in future promotions about how I made four-digit-plus gains in less than a year. 

It’s a cyclical space. The same cycle that cuts a company’s market cap by 70% rewards patience and diligence with 1,000%+ gains when the cycle kicks back up.

Another company I wrote a check for less than a year ago is up some 15-fold and it’s just getting going. 

I’m not saying this to boast, I’m saying it to highlight the opportunities that exist in the junior space right now

As a mentor of mine likes to say, “In a bull market a 12-year old can throw darts at a company name, and 7 out of 10 times that name will do as well as what any of the so-called experts pick.”

He’s right. It’s the way this business works. We’re not at that part of the cycle yet but the cycle is our friend again and will be for years.

To your wealth,

gerardo-sig

Gerardo Del Real
Editor, Junior Mining Monthly and Junior Mining Trader.

For the past decade, Gerardo Del Real has worked behind-the-scenes providing research, due diligence and advice to large institutional players, fund managers, newsletter writers and some of the most active high net worth investors in the resource space. Now, he is bringing his extensive experience to the public through Outsider Club, Junior Mining Monthly, and Junior Mining Trader. For more about Gerardo, check out his editor page.

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