Lior Gantz of the Wealth Research Group invited me onto this show to review Barrick Gold as an investment. It was an interesting proposition because I was not given advance notice in order to prepare notes or review Barrick’s financials. The exercise forced me to focus on an overview of my reservations about the quality of Barrick as an investment and point to the critical financial metrics I review when doing a “drive-by” analysis of a prospective mining stock investment.
Investing in the largest mining companies is like investing in IBM instead of the promising emerging technology stocks during the 1990’s technology revolution. The best geologists at the big companies, after they’ve reached a level of financial security, leave to develop new gold and silver projects that are often overlooked or rejected by the big companies. These are the types of investment opportunities that offer the best upside in the sector and these are the opportunities that present in the Mining Stock Journal. In the last 8 weeks two of the companies presented in the Mining Stock Journal have agreed to be acquired (Exeter Resources and Mariana Resources).
It’s sad, but I’m sorry; What you’re really doing is exchanging Rothschild bank notes(i.e. Fake money) for real money (I.e. Pure AG or AU if you prefer).
Silver is an asset and is currently the cheapest asset in the dysfunctional US. I will comtinue to exchange $ until the AG exchange ratio hits $50.