We are at the best possible moment to jump into the gold cycle.
That’s because we’re experiencing our first inflation scare in perhaps 40 years.
And supply is hitting a major snag.
In fact, today, the world is running out of gold.
That is, all the great gold mines have started to run dry, with nothing yet replacing them.
Consequently, supply has been shrinking recently… just as demand is rising.
This is all part of the normal cycle of the gold market… as gold floods a market it becomes less profitable to supply, there is less exploration… which eventually leads to constricting supply, raising prices… which leads to a new round of exploration.
With the well running dry for a number of mining interests, we’re at the outset of a new boom market for gold prospectors — those companies that specialize in finding rich veins.
After proving good gold on land they own (or own the mining rights to), prospectors sell on to the miners, usually for enormous multiples of initial investment.
It’s riskier than most parts of the gold market. It’s with reason that striking gold is used to refer to getting lucky.
Which — if prospectors scare you — fair enough, you’ll do very well investing in physical gold right now, through a fund like SPDR Gold Shares (NYSE: GLD).
With demand rising and supply dwindling, we’re at the start of a gold rush.
It’s only a matter of time before the squeeze pushes gold prices higher — and you’ll have plenty of exposure through a gold ETF, or owning physical gold.
But if you want to take a shot at a high risk-high reward with enormous upside, this is the most opportune time to take a small part of your portfolio and make a few bets on prospectors.
Preferably at least five, though the more the better — if one out of every ten pays off, you’ll wind up much wealthier than when you started.
To begin building that portfolio, here are our favorite five gold prospectors you can invest in today.
Gold Prospector #1: New Found’s, New Find
A Newfoundland prospector has gone from a small $30 million operation to one valued over $1 billion.
That’s because their test drills have found gold at extremely high concentrations — so high, they haven’t been seen for years.
In that way, we’re playing it somewhat safe with this first pick. New Found Gold Corp (PNK: NFGFF) isn’t just a hope that there’s gold in them hills — the gold’s already proven. With over 200 g/t measured in some places.
If you aren’t familiar with gold mining numbers — that’s high. If you have a vein greater than 100 g/t, it will nearly always pay off to mine. In some markets, you can successfully mine at significantly lower concentrations.
But, even at $1 billion, New Found Gold is likely undervalued. The company, cleared to apply for listing on the NYSE, is going forward with a plan to jump up into the senior exchange in the third quarter of 2021.
And this strike has been so monumental thus far, it’s kicked off a search for more gold in the surrounding area. Newfoundland is having its own gold rush.
We’ve missed the biggest run up in New Found Gold Corp. But it still has some room left to run before this story ends. That makes it our safest prospecting pick.
Gold Prospector #2: Two Young, Growing Australian Mines
Canadian company Karora Resources (PNK: KRRGF) owns two mines in the southwest of Australia — one named the Beta Hunt Mine, the other Higginsville Gold Operations. The two of them increased gold production 20% in the last quarter, and appear to still be getting up to speed.
Revenue is up over 9%, and three-year production is projected to come in at around 200,000 oz. — at a cost under $900-1,000 an ounce.
With gold currently trading above $1,700 an ounce, and going up, that’s a lot of proven value in the ground.
And the pot may yet still grow.
Gold Prospector #3: The Biggest Opportunity in Burkina Faso
One of the riskier prospectors on this list, UK-based Orezone Gold Corp (PNK: ORZCF) owns 90% of perhaps the largest undeveloped gold field in Burkina Faso, named Bomboré.
Tests done in 2019 suggest the site can produce around 120,000 ounces of gold a year — starting in 2022, and lasting for at least 13 years.
And that the gold can be brought out of the ground for less than $750 an ounce.
At a price of $1,300 an ounce — well under today’s price, which is just at the start of gold’s supply squeeze — would pay off all capital investments in two and a half years.
This is the most conservative estimate — and it shows great potential for this site.
In truth, Orezone thinks it has 5 million ounces of gold in Bomboré — with the potential to find more as further exploration is done.
An investment in Orezone will pay off quite handsomely should total recoverable gold turn out to be closer to 5 million ounces.
If, instead, recoverable gold is economic for a bit over 1.5 million ounces, the company should still do well, and an investment should still prove profitable — but it’s the high-end home run that we’re hoping for.
Gold Prospector #4: The Richest Mine in Canada?
In central British Columbia, about 450 km northeast of Vancouver, sits the Blackwater Mining Project.
While the crown owns the surface rights in the area, Artemis Gold Inc. (PNK: ARGTF) has 100% of the mineral rights, spread through some 328 mineral claims.
Which means Artemis is sitting on a literal gold mine. One with estimated to hold over 10 million ounces.
That’s enough to put Artemis in the running for the largest gold reserve in all of Canada.
Even better, Artemis only just received permission, on July 15, to start developing its 150,000 hectares.
We are sitting at the literal birth of one of the most promising mines in the world. And you can still get in while the company’s market cap is $700 million — a fraction of where it should be once the mine is up and running.
As the site spins up, you’ll hear much more about Artemis… or about whatever mining major it sells mining rights to.
This tiny prospector owns one of the richest stakes in the world. You want to invest before the stock is accurately priced — before the gold starts coming out the ground.
Today, you can still buy shares at what will soon be seen as bargain-basement prices.
Gold Prospector #5: Diversified Insurance
Equinox Gold (NYSE: EQX) is already an established player in the gold mining sector.
It has been around long enough — and already has had enough success — that’s it has graduated from its pure prospecting roots, and now operates mines, processes ore, and participates in multiple steps in the journey of gold from ground to market.
But prospecting remains Equinox’s core competency.
That makes it an ideal company to own during the early part of this gold bull run… and to hold onto when we transition from an exploration-heavy phase, to a production-heavy phase.
Equinox will do very well in both.
Today, it already has seven operating mines scattered throughout the Americas — including in Ontario Canada, Mexico, California, and Brazil.
The company produced about 125,000 ounces of gold last quarter alone.
Yet its market cap is lower than New Found Gold’s, which has yet to start producing any gold from its rich veins.
With four more mines under active development, Equinox aims to produce over 1 million ounces of gold a year within a short span of time.
That would make it one of the largest producers in the Americas — and in the world.
Grab your shares today before next quarter’s results produce of rush of investors getting into one of the best gold investments available today.
Remember — as gold prospectors, each of these companies bears greater risk than your average stock purchase.
That’s why you want to own as many as you can.
Because even if only one of these companies realizes its rosier projections, that will more than make up for disappointing results elsewhere.
It really only takes one.
The trick is having so many in your portfolio, you’ve got that one when it pops.
You’ll have a hard time finding a better starting point than these five companies.
Put a little into each of them — along with other prospectors you like — and then patiently wait.
Gold is set up for one of its greatest bull runs in our lifetimes. Don’t get caught on the outside looking in.
Protect the rest of your investments — and protect against creeping inflation — by putting a slew of prospectors in your portfolio today.
A massive gold deposit has been discovered and two well-known gold billionaires recently invested millions in a small junior gold miner with rights to the land.
This stock is still priced around $3, but it likely won't stay secret for long.
Learn about my favorite junior miner here.