Knowing these facts about the yellow metal — and clearly seeing that gold was very likely to explode higher in value — I started investigating gold mining companies. In particular, my in-depth research drove me to deep analysis of junior mining companies.
I was curious about how investors could profit by investing in the shares of these companies in comparison to gold itself. So I conducted a thorough, intense study of my own.
The results were surprising, even to me!
The amount of potential profits an investor could realize investing in the shares of junior gold mining companies was indeed astonishing.
Keep in mind that from February 6, 2001 to the present day, the best-performing senior mining shares produced gains of up to $1.40 for every one-dollar gain in gold bullion.
But the historically, the results of my studies show that the best junior mining shares beat gold as much as 69 to one!
For example, between October 10, 2008 and February 4, 2011, gold rose 61 percent — but the best-performing junior mining shares did up to 68 times better:
First Majestic: Up 1,151% — 19 times better than gold …
Asanko Gold: Up 1,182% — also 19 times better than gold …
Avalon Advanced Materials: Up 1,374% — 23 times better than gold …
Kaminak Gold: Up 3,033% — 50 times better than gold, and …
Rare Element Resources: Up 4,179% — 68.5 times better than gold.
In other words, for every $1 gain in gold bullion, the average junior miner posted a gain of up to $68.50.
Example: Gold goes up $100, you make $6,850. Gold goes up $1,000, you make $68,580.
I use a three-step process for choosing the best investments:
Macro-economic, which is an ongoing process of analyzing moves in the U.S. dollar, company fundamentals, impact of news and analysis on metals prices
Deep fundamental company research, including and not limited to: proven reserves, low debt and production costs and plenty of capital
Cyclical and technical analysis, which helps to validate macroeconomic trends, clearly define risk entry points, define timing to help lock in profits in short-term up and down moves in the market
My proprietary trading models
Bottom line: Junior mining companies can be a good consideration for a diversified portfolio. However, as good as this all sounds, with an estimated 4,000 junior mining shares available — and only 5% of them generating 90% of the industry’s profits — it’s important to know how to pick the best ones.
And that’s where my expert analysis and unique forecast models come into play…
Indeed, I am one of the few analysts alive who has accurately predicted every major twist and turn in the gold market since the late 1970s.
When I predicted rising gold prices in late 1999, the yellow metal rallied 533% to over $1,900 per ounce. That would be enough to multiply your money more than six times over.
I also called the top of the gold market in September 2011, telling my newsletter members that the rally in gold and silver was over for the time being. Gold prices began falling on cue.
I also accurately predicted the collapse in oil and grain market prices in 2014 and early 2015 — two events that took many professional commodity traders by surprise.