Greg McCoach: Majors are Going to Fight for the Best Gold Juniors in this Bull Market
Greg discusses issues that new investors have of being too greedy and failing to take profits. Junior mining equities are not for everyone as they come with a lot of risks but also a lot of potential upsides. New investors should first build a solid financial base in the physical metals and then consider some of the royalty plays.
He hopes to see a continued slow and steady rise in spite of all the bubble markets. Gold should continue to move up steadily until the area of 1750, where there is considerable technical resistance.
Great Bear Resources is a company that Greg is very excited about as they have an excellent management team under Chris Taylor with excellent infrastructure. Their latest drill results appear extremely promising.
You have to reconsider your investment thesis often since junior companies dilute their shares and reduce your opportunity. His preference is to stick with reputable early-stage explorers in proven regions and spread your risk over multiple companies.
If you buy when the markets are high, you tend to get slaughtered, so you need to buy when no one is interested. This takes courage as people tend to want to invest with the masses.
He discusses the New Carolin, a district-scale project near Vancouver, B.C., that mine was shut down during a past downturn in price, having never completed their exploration targets. They have some results coming very soon from a recent drill program.
Conferences are getting more exciting, but the large funds that were vital in the last bull market have yet to return. There will be a time when things really get going, but right now, investors are buying selectively, and he expects that trend to continue.
Time Stamp References:
0:40 – Mistakes new investors make.
1:45 – How gold will unfold this year.
4:10 – Great Bear Resources report.
6:00 – Evaluating your thesis for success.
7:10 – Spreading your risk across several good companies.
9:00 – Contrarian investing when markets are dreadful.
10:20 – New Carolin Gold
12:00 – Conferences and investor sentiment.
Talking Points From This Weeks Episode
• Lessons for new investors
• The outlook for gold, hopefully, a slow and steady rise.
• Why it pays to be a contrarian.
• Two promising junior mining companies.
• Dilution and the importance of questioning your investment thesis.
Greg McCoach is the editor and publisher at the Mining Speculator. He is an ardent student of history and entrepreneur who has successfully started and run several businesses over the past 38 years.
He was a founding partner of Precision Graphics, and after selling the company, he began an exhaustive study of history in a search for truth. He became a follower of Austrian economics and the need for a more honest monetary system.
He takes a contrarian approach with investing that he learned from reading the autobiography of J. Paul Getty. “Buy when everyone wants to sell and sell when everyone wants to buy.” This is the essence of contrarian investing and the basis for Greg’s philosophy behind his newsletters.
Mr. McCoach sought out opportunities within these sectors and started AmeriGold, a precious metals bullion dealer that has been operating successfully since 1998. Two years later, based on his success in recommending an undervalued silver company to friends and family, he started his newsletter, The Mining Speculator (TMS), during the summer of 2000.
He has traveled the world examining junior mining companies. Greg’s years of business experience and extensive personal contacts in the mining industry have provided unique insights that have generated an impressive track record for The Mining Speculator since its inception in 2000.
You can find out more about his newsletter at https://discoverynexus.com