Investors are on a never-ending quest for knowledge to improve their ability and find that perfect investment. So it comes as no surprise that the San Francisco Hard Assets Investment Conference has become a place where investors, experts, and companies converge to share insight and opportunities.
This year’s conference, held November 27-28 at the Marriott Marquis, offered numerous speakers (many who have been interviewed by MetalsNews) on a variety of timely topics. The conference is also a place to network with new and familiar contacts. While at the conference, we had the opportunity to speak with Greg McCoach, a very successful investor and entrepreneur, and the founder and publisher of The Mining Speculator. Since 2001, Mr. McCoach has been guiding investors through the opportunities and pitfalls in the metals and mining sector. The Mining Speculator has guided investors to earn significant returns, and if investors followed the guidance of the newsletter with $10,000 in 2001, they would have earned $2.4 million by today. That’s an impressive track record, so it’s no surprise that we wanted to hear what Mr. McCoach had to say.
He started by talking about his forecast for 2011: “A lot of people are asking about the recent pull-back in gold and silver. I think this is just a pause. We’re going to see a lot of pressure to the upside on the COMEX in New York, and that gold and silver prices are going to be pushing for yet another new high before the end of the year. And I think 2011 will be a banner year for precious metals and junior mining stocks.”
Of the opportunities he sees for investors in the marketplace, Mr. McCoach said, “There are lots of new, exciting opportunities in the Yukon, and that has translated into a huge staking rush. So this has become a district-scale event that promises to affect the market as a whole in the years to come.”
So, where specifically is Mr. McCoach looking? “I’m spending a lot of time in the Yukon,” he said. “Taku Gold Corp (TSX-V: TAK) is a company that has property in the White Gold camp that’s gotten a lot of attention because of the Underworld and Kaminak Gold discoveries. We really like their property package. It has the really good high-grade soil samples we’ve seen in Underworld and Kaminak. It has good geological structure. I think this is going to be a good play for people to get involved with when things heat up this spring and we get into the summer drill programs in the Yukon.”
“I think Kaminak Gold (TSX-V: KAM) is going to be taken out: I think that company has near-term potential for a buy-out in the $10/share range. It’s trading currently around $3/share.”
Why Mr. McCoach is focused so excited about the Yukon? “The perfect storm is really brewing for an area like this,” he said. “With gold prices increasing so quickly, the attention of the companies and investors will follow the price. And, there seem to be big gold deposits with high grade potential, easily mineable, and near the surface. With massive discoveries by the three big companies up there already, there is something to get excited about. The current theory is that this is the source of the Placer Gold that drove the first Yukon gold rush in Klondike near Dawson City all of those years ago. That’s the thought that may drive many more to this area today.”
According to Mr. McCoach, this is certainly the time for a gold rush: “The environment for gold is at a very positive place right now.”
Next, we wondered if it was just the price of gold that was compelling today’s individual investor to buy into hard assets, or if there were other factors at work, too. Mr. McCoach responded: “I believe that the safe haven move for the mainstream is underway now. Up until this point, it’s just been a small percentage of investors that have been investing in gold and gold stocks. Right now, you have large pools of capital that are becoming fearful because of what they see in the US and elsewhere, so they’re moving into gold. Gold is becoming money. Gold is a commodity when times are good. When times aren’t good, gold suddenly moves into the money phase.”
This seems to be an accurate observation, and not just for bullion. “While many wealthy individuals are looking to physical gold, the market for gold stocks is just as solid,” observed Mr. McCoach. “We’re going to see the market rip-roaring soon. The small market will lead the junior mining companies to ramp up production very quickly to help the significant inflow of cash. That can only lead to better opportunities as a whole.”
But for investors who feel that they have lost the opportunity to get in early, Mr. McCoach offers some exciting news: “Fortunately, there’s still time to get involved, especially in the Yukon. There’s a limited drilling season because of the colder weather there, so careful research is far more possible there than in other areas.”
Mr. McCoach’s Mining Speculator newsletter is where many are turning for advice, but he offered us a few notes while we were at the conference. “Orko Silver (TSX-V: OK) may be a quick double-your-money opportunity in the near future. Likewise, the Pediment Gold Corporation (TSX: PEZ) may be headed toward a serious buyout very soon as their 43-101 comes out to show how fast their resources are growing, and that can only make stocks soar for them as well. Ethos Capital Corp is a company in Mexico I’m recommending right now, too. And, the rare earth metals space is very active right now. However, I’m sticking with precious metals right now because I think that’s the place to be. We’ll take our profits and reinvest in the base metals as we get into the next phase but right now, stick with the precious metals because that’s where the big money is going to be made.”
Mr. McCoach offered one mining tip for new investors: “Stay away from promoters within the industry. You have to stick with mining companies that have individuals with the right backgrounds. And while there’s plenty of opportunity, doing your research is important too.”
REFERENCES
Greg McCoach’s newsletter: http://www.miningspeculator.com/
Greg McCoach’s website: http://www.angelpub.com/
Greg McCoach is the president of AmeriGold: http://www.amerigold.com/
Also discussed in this article:
· http://www.takugold.com/
· http://www.kaminak.com/
· http://www.orkosilver.com
· http://www.pedimentgold.com
· http://www.ethoscapital.com.my/