Gold and macro environment, page-494

I agree.

I remember the 2000’s before and after 2008 GFC - I did not invest in gold stocks up until about 2006 or 2007 but I remember I used to watch CNBC and and I just could not believe the run up in the POG, almost every day it increased - I was mesmerised by the rise in POG - it was just amazing. There were pullbacks but minor really except for around the GFC. I knew nothing about investing in gold stocks but eventually dipped my toe in - I had a big winner in AND (mainly gold with some silver - was high grade maybe around or a but lower than NN/Pepper) it went up about 10 times from when I brought in and was taken over for about $3.5b in 2010 (no infrastructure but a FS) by one of the big overseas producers (now part of Newmont), not the top in the gold and silver bull market frenzy but close enough to it.

In have felt in the past few weeks, when I cast my mind back to the gold bull market up to 2011, I have a similar feeling that we may see something similar in the 2020’s with AND replaced by SPR in my case. If there is a repeat of that bull market SPR is going to go much much higher as it unlocks the riches of Dalangara and anyone with patience is going to be richly rewarded by SPR - I believe it will be taken over, its just a matter of when and the price. In sustained bull markets stocks can go from very under valued to significantly over valued. This time I have much more money to play with than I did in the 2000’s! I did have quite a few losing stocks and other winners BUT THE BIG LESSON I HAVE LEARNT IS TO INVEST IN QUALITY gold and silver stocks - it pays off big over time - quality means high grade with actual big resource or very likely big resource. Any significant infrastructure is a major bonus.

While low grade stocks can go up % wise more than high grade stocks depending on when buys in the trouble most investors fall into is they get greedy and fail to sell at a good time - then when the market goes bad they lose all their money or the grade is too low to be economically feasible and the price crashes.

unfortunately for many punters there are a lot of stocks that get pumped very hard by management and the board with paid assistance from external advisors. I have seen this so many times - just look at numerous stocks last year drilling for lithium - pumped up to huge price levels (eg 5- 10 times) on the smell of lithium. Just look at what has happened to CHN, RTR, SVY, ASM share prices - they have been off 90% to 95% from there highs. I went to the gold conference in late August and I was talking to a company (gold explorer) with a MC of over $500m (I had been warned by an expert that management were pumping the stock and that it was going to be very hard to mine) - it came to pass that I was not talking to a senior executive instead to a paid PR person (he told me he was a PR person paid by the company) trying to explain technical aspects - I ran for the hills.

The lesson came home to me clearly when someone on HC last year wrote that he/she rode a stock up so much that he sat on a profit of $5m only to see it go down to almost $0 losing the $5m!