On the 28th of March, I sat down for an interview with New York Times Best-Selling Author James Rickards, and we mainly discussed risks to the global economy.
What I wanted to do is compare Rickards' asset allocation to my own suggested portfolio for this year.
Right off the bat, Rickards noted that owning safe havens is a must—preferably a smart combination of them.
I am personally getting interested in cryptocurrencies, specifically in this new one that has "Bitcoin" potential.
But most of all, I was surprised that a man who wrote four books about the coming economic collapse is bullish on private equity.
From reading his work, I know that junior gold stocks are an asset class he is extremely bullish about, especially considering his price target for gold exceeds $10,000 per ounce.
I personally know—after having spoken with over 45 management teams in the first quarter of 2017—that most of them will see a huge rise in investor interest if gold surpasses $1,350.
What they are most concerned about is the lack of discoveries. There hasn't been a meaningful one in over a decade, and these large-cap companies have a ton of cash to "blow" on mergers—there is no other alternative.
Five years of a brutal bear market have decimated cash flows for the majors, but 2016 cleared all that out.
The largest producer and consumer is China, and they have an unending appetite for gold.
The best strategy for boiling down which junior companies (and their lucky early shareholders) will get to experience a surprising phone call from a lawyer with a proposition to purchase is to look at the Chinese miners.
After you make a list of the cashed-up ones, the next thing to do is look at recent history and strike any company that hasn't made a project purchase in the past four years (which are most of them).
The last part of your strategy is to see which junior has a property that makes perfect sense for a major to buy, and I've taken a look at the past six years' worth of merger history. The conclusion is simple: the closer the operations are, the greater the likelihood.
We've actually found a company that shares their deposit with China's premier gold acquisitions miner!
The reason you probably haven't heard of it is because it started trading on Friday, the 31st of March. The 2nd of April will be its second trading day, and you can become part of the shareholders at the basement level—that doesn't happen often.
This company is chaired by none other than Tookie Angus, so if you've been following Rick Rule and Stansberry Associates' favorite mining executives, you'd know this very successful entrepreneur is ranked way up at the top.
What nobody—and I mean that literally—is daring to say is that for the first time in eight years, it looks like the average guy is willing to take on risks in the market.
Remember, this has been the second-longest bull market in history, but the gains have remained to be shared only by the top 10% of the population.
The average person has had "2008 fever," and with the "Trump wind" at his back now, you will begin to see the retail crowd start to Google for the "top gold stock to buy. . ."
You have already done your homework, and in the coming months, as these trend-chasing novice investors come in and bid up shares, your positions should already be tightly held.
This can be even more profitable than the first six months of 2016, and this company could be one of the biggest winners.
Lior Gantz, an editor of Wealth Research Group, has built and runs numerous successful businesses and has traveled to over 30 countries in the past decade in pursuit of thrills and opportunities, gaining valuable knowledge and experience. He is an advocate of meticulous risk management, balanced asset allocation and proper position sizing. As a deep-value investor, Gantz loves researching businesses that are off the radar and completely unknown to most financial publications.
Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.
1) Lior Gantz: I, or members of my immediate household or family, own shares of the following companies referred to in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies referred to in this article: None. My company has a financial relationship with the following companies referred to in this article: Kenadyr Mining Corp. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor's fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview or article until after it publishes.
Charts courtesy of the author