In our opinion, there has never been a greater divergence in the financial markets than today between macroeconomic fundamentals on the one hand and asset prices on the other. But there is one exception: gold and silver mining stocks. Therefore, we as German Mining Networks (www.german-mining.com) and the investors we serve are mainly invested in precious metals and gold and silver mining stocks.
In this special issue we will show you why we are only at the beginning of a golden decade, what performance potential this offers for mining shares and how investors can maximally profit from this.
The story also rhymes on the financial markets
Compare the overvalued stock markets of 1930 and 1970 with the subsequent performance of gold mining stocks. We find the figures below speak for themselves and could point us towards the 2020s. Even today, stocks in the Dow Jones, S&P 500 or Nasdaq indexes trade at valuation levels artificially created by central banks and money printing. A bursting of the bubble and strong corrections are preprogrammed. While the Dow Jones lost 86% of its value within 2 years during the 1930s, the shares of Homestake Mining, back then one of the largest mining companies, rose 7 times.
From 2000 to the end of 2002, gold outperformed the S&P 500 by 120%. Even 2010, was a good year for equities in which gold outperformed the S&P 500 by 50%.
The Time is Now
We currently see very good entry opportunities, just in time before the second wave of strong price increases in mining stocks begins. Only recently, gold has broken through an important resistance line towards the top compared to the S&P 500. There is thus no technical resistance and enormous upside potential.
Since increases in the price of gold are immediately reflected in the profitability and valuation levels of the miners, you can achieve returns of several 100% with the right mining companies.
The catch-up potential of gold mining stocks
The catch-up potential of the mining stocks themselves is immense. To return to the median of 1.46 only, the mines – as a sector measured against the Barron’s Gold Mining Index (BGMI) – must rise by 100%. Selected quality stocks, such as those presented below, have already doubled in value and have the potential to multiply further.
Insider Report: How to select the best gold mining stocks for your portfolio!
In no other sector is selecting the right people as important as in the mining sector. Through numerous meetings we found out ourselves who really means what they say and who puts their words into action. These are then exactly the CEOs in whom we want to invest and who repeatedly manage to generate exceptional performance for their shareholders.
Our meeting with Steven Dean in 2015 laid the foundation for our success today. Previously, Steven had successfully founded and sold two mining companies to Canadian and Australian corporations. With Atlantic Gold he managed to sell again yet to another major player.
Another example of continued success in the mining sector is Ross Beaty, Canadian billionaire and founder of Pan American Silver (PAAS) and Equinox Gold (EQX). He has created more than $6 billion in shareholder return with his 13 founded companies.
GMN list of excellent CEOs:
- Robert Friedland
- Ross Beaty
- Steven Dean
- Keith Neumeyer
- Sean Roosen
- Mark O´Dea
- Amir Adnani
- Ivan Bebek
- Craig Perry
- Eric Fier
Not just the management is extremely important. Good CEOs attract good investors. One example is Pure Gold with Mark O’Dea, whose track record attracted star investors such as Rob McEwen and Eric Sprott as major shareholders. We are happy to follow these investors. They have also proven that with the right selection of companies, 10–20x returns are possible. A good example of this is the case of Eric Sprott and Kirkland Lake Gold (KL).
GMN list of renowned mining investors:
- Eric Sprott
- Lundin Familie
- Rob McEwen
- John Paulson
- Tom Kaplan
- Richard Warke
Artemis Gold: Mit diesem Erfolgsrezept sind wir ständig auf der Suche nach dem nächsten Star in der Branche und haben diesen mit Artemis Gold (ARTG) erneut gefunden. Artemis Gold ist das neue Unternehmen von Steven Dean, das 2019 nach dem erfolgreichen Verkauf von Atlantic Gold an den Start ging. Identisches Management und disziplinierte Vorgehensweise beim Vorantreiben des Projekts haben Investoren bereits mit einem 5x Return belohnt. Das Management hält selbst 42% der Aktien, und hat mit dem Blackwater Gold Projekt in British Columbia, Canada eines der größten Goldvorkommen in Nordamerika erworben. Das Unternehmen kann mit diesem Projekt überproportional von weiter steigenden Goldpreisen profitieren und ist durch seine Größe erneut attraktiv für eine Übernahme durch einen größeren Player.
Wir sind gespannt auf den rasanten Vormarsch bei der Projektentwicklung und freuen uns über weiter steigende Kurse, die der Markt dieser Aktie wohl noch zu geben hat, bis das volle Potenzial ausgeschöpft ist. Weitere Details zum Potenzial der Artemis Gold finden Sie in diesem Blogartikel.