Company Selection (Stock picking) in the gold and silver space is vital because most large miners fail to outperform Gold, and 90% of Juniors are junk.
You can make money on junk, but losing money is much easier. I have experienced both.
Emphasizing value and fundamental quality in your stock selection can significantly improve your risk-adjusted returns, making it a prudent strategy for investors in the gold and silver space.
I look for a combination of value, fundamental quality, and upside potential. It is possible to find value and fundamental quality that have 5x
or even 10x potential.
Regrettably, many investors and speculators overlook the value of expertise in their investment decisions, potentially missing out on valuable insights that could enhance their returns.
Whenever someone emails me asking for my thoughts on ABC company, I always mention that giving someone a free
analysis would be unfair to my paying subscribers. If it is a company I know, I mentioned I can provide my opinion after they subscribe.
I recently wrote an article about investing in producers who invest in exploration.
A gentleman emailed me in response, thinking he had found the next huge winner and wanting my opinion. I
told him I could help him, but he would need to subscribe. (By the way, that help also includes information I have gathered from industry sources I trust.)
Instead of subscribing, he regurgitated much of the promotion behind this company, which has performed poorly in recent months even as Gold has broken to a new all-time high and run to nearly $2500.
While this company may recover in the future, it's important to remember that junior mining is challenging. It's crucial to avoid taking unnecessary risks or making speculative investments when the value proposition is uncertain or there are significant flaws.
It is also important to seek guidance and expertise that can
help you strengthen your portfolio and become a better investor and speculator.
