Doug Casey Sees Cyclical Opportunity In Precious Metals And Junior Miners
By October 27, 2017– Published in on
When an investor like Doug Casey says that the bottom of a bear market is probably in, it would be smart to pay attention. Depending on how you want to measure the beginning of the current bear market in precious metals, it has been going for at least six years, if not longer. For mining shares the bear market has meant deep cuts in share prices, and a very difficult operating environment.
But for Mr. Casey, the low for gold and silver prices probably happened around the end of 2016, or the beginning of this year. This means that conditions should improve for metals investors going forward, and there could also be some big opportunities looming in the shares of mining companies.
The last few years has been rough for mining companies. But for junior miners that have access to capital, and intelligent investors, this is the perfect time to make acquisitions on the cheap. One company that has been using this tough market to expand their resource base is GoldMining Inc. and their CEO, Amir Adnani, has spearheaded a series of resource acquisitions that could pay off big over the next few years.
Vision and Goals
Of Doug Casey's 8 “P's” for successful investing, “People” are by far the most important. It doesn't take much to see how right he is. When it comes to GoldMining, Amir Adnani has shown that he knows how to create value for shareholders, and make great moves in a trying market.
It wasn't long ago that GoldMining Inc. was called Brazil Resources, and at that time it was a junior miner with a collection of solid gold properties in Para State, Brasil. But over the last 18 months, Mr. Adnani has expanded the land portfolio to include some very promising properties in both Columbia and the Yukon. The dilution that these acquisitions created for existing shareholders was minimal, and the reserves that were added make GoldMining a company worth watching.
While they haven't started producing gold yet, GoldMining is sitting on nearly 20 million ounces of gold reserves. This makes it a prime candidate for JV's with major miners who badly need to replenish their reserves, or even a takeover. If Doug Casey is correct, and the bear market in precious metals is over, companies like GoldMining could have explosive upside potential.
A Huge Market
For every company like GoldMining, there are probably dozens that aren't worth wasting your time or money on. In the world of junior mining shares, quality counts for a lot. Investors like Doug Casey, Rick Rule and Marin Katusa have shown they can pick winning companies over and over again. If we are on the cusp of another bull market in gold and silver, their opinions are more important than ever.
If you are interested in learning more about the market for junior gold mining shares, the next Silver and Gold Summit is a great place to get the latest information directly from successful investors. The Summit will be happening on November 20th and 21st, and a list of all the presenters can be found here. There will be a lot going on in the heart of San Francisco, and we are thrilled to have so many great people scheduled to attend!