CNBC was just forced to admit that Newmont (NEM) is this week's #1 largest gainer in the S&P 500, and you could easily tell they had a hint of disgust in their voice.
In theory, VOO would be a perfectly fine investment if it was actually diversified, but Newmont (NEM) is the only gold miner in the S&P 500, and it is one of the smallest companies in the S&P 500. Buying VOO gives you almost zero exposure to gold.
When we launched NIA in February 2009, we publicly suggested Newmont not because we like the company, but because we felt it was the responsible thing to do. Most people said we weren't helping anybody by telling them about Newmont. People like to learn about small-cap gold companies that will 5-10x in value in the short-term like we believe Highlander Silver (CSE: HSLV) and Augusta Gold (TSX: G) are about to in the weeks/months ahead.
Newmont has a long history of giving away assets for pennies on the dollar right before huge rallies in gold, and then they overpay for assets near the top.
NIA has never existed during a secular bull market for gold exploration stocks. We did very well on gold/silver exploration stocks for a 24-month period between February 2009-February 2011, an 8-month period between January 2016-August 2016, and for 11 months between March 2020-February 2021.
Our largest gaining mining stock in history Arizona Mining (originally Wildcat Silver) was run by the same team as Highlander Silver (CSE: HSLV) and Augusta Gold (TSX: G). It achieved its gain of 1,576% from NIA's suggestion price during a severe bear market and was the #1 best performing mining stock during this time period getting acquired for $2.1 billion. Prior to Arizona Mining, we were following their Augusta Resource Corp very closely as it got acquired for $667 million.
A gain of 1,576% is actually small compared to some of our Crypto plays. In fact, we missed out on the Augusta Group's Solaris Resources (TSX: SLS) gaining by 1,144% in 18 months between July 2020-December 2021 and reaching a nearly $2 billion market cap because we were busy covering Voyager Digital, which gained by 6,225% within 10 months of NIA's suggestion before later going bankrupt (which we warned it would months in advance of Voyager crashing).
The prices that some of us thought gold had the potential to reach in 2011 of $5,000+ per oz were unlikely to happen because everybody thought it would. Today, nobody believes gold will reach $5,000+ per oz so it most likely will.
Gold's 2022 low of $1,615 per oz was actually much more undervalued adjusted for M2 Money Supply Per Capita than its December 2015 low of $1,050 per oz. In many ways, gold's current bull market began in late-2022 from a price of $1,615 per oz, and a new secular bull market for gold exploration stocks began in late-2023.
During the last secular bull market for gold/silver exploration stocks between 1998-2007, Silver Standard Resources gained by 5,993.33% and hit a $2.8 billion market cap.
Highlander Silver (CSE: HSLV) owns the #1 best asset from the original Silver Standard Resources: San Luis the #1 highest grade gold/silver project remaining in the world.
Augusta Gold (TSX: G) could get acquired for $5+ per share in the upcoming weeks, although it is always best to assume a worst-case scenario where it doesn't. When you invest in a top management team there is always a chance of them adding something new to the company that is 10x more valuable than their current assets. All we know for sure is Richard Warke said not to worry about the debt because he doesn't care about the company paying him back, he builds companies and makes them very valuable. Whether it gets acquired for $5+ per share or they are about to add a new asset that sends it to $5+ per share, Augusta Gold (TSX: G) will hit new all-time highs in the weeks ahead.
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. NIA's President has purchased 125,000 shares of HSLV and can buy or sell shares at any time. NIA's President has purchased 232,200 shares of G and may purchase more shares. This message is meant for informational and educational purposes only and does not provide investment advice.
Preparing Americans for Hyperinflation
