Sept. 9, 2022
Could there really be such a thing as TOO MUCH gold?
As you may have noticed this week, we’ve been talking a lot about gold.
It’s for a good reason: our own gold guru Nick Hodge has just returned from an important visit to a gold mine. According to everything that Nick has shown me (and from the video that he filmed during his visit) it looks like this mine could quite likely have the largest gold reserves in the world.
Which is, of course, incredible. Eureka! We've found it! What a remarkable discovery.
But all of this begs the question: if there's so much gold there, why is it not part of this company's initial announcements that we've seen thus far?
Well, that is for a couple of reasons.
Reason #1 – Quantity and Location
The first is that YES, there IS such a thing as too much gold — but it’s not in the way you might think. You see, the permitting process is a delicate one, and there are a lot of complicated factors that go into complying with all of the red tape. And one of the largest factors is the amount of gold in a reserve… the more gold there is, the more regulators want to know. Another important factor is where this gold is located in the mine. In short, it's much easier to get the permits you need if you're focusing on manageable reserves that are easy to access. So the incentive is low for this gold mine to reveal additional reserves at this stage, since it could lead to costly delays as this mine completes the permitting process. But what’s important for us as investors: that doesn’t mean the gold isn’t there!
Reason #2 – The Price of Gold
As you may have seen in the news, gold has pulled back from its highs. (Which isn't a problem for us. That means it's a great time to buy, while prices are still low.) But from the perspective of this gold mine’s management, it doesn't make it a good time to announce the additional reserves. The incentive is high to wait for gold to rise first. And keep in mind that these additional reserves will likely carry higher extraction costs, which become less of a factor when the price of gold is high.
Reason #3 – Healthy Growth Over the Next Gold Bull Cycle
It fits into this gold mine’s overall growth strategy. Rome wasn’t built in a day — and the world’s largest gold mine won’t be either. But make no mistake, that doesn’t mean investors should be sitting around waiting. Quite the opposite, in fact… NOW is when it’s still possible to get in early. This is a short window of time where you can get in before the gains have all been made. Nick is excited about this mining project because there’s still time to get inside while prices are good.
Nick knows exactly what to look for in a mining project. He’s spent the last decade visiting mine sites just like this — and he’s learned what questions make the difference when it comes to making money on mining stocks.
In this case, it comes down to depth. Both figuratively and literally. Nick knows from his years of experience that we haven’t seen all the drilling results yet that are possible. When he returned from his trip he talked in detail about how we haven’t seen the drilling results yet for the lower depths (but we will soon). There’s a lot more to be revealed.
On Thursday, we held a special event to release Nick’s video tour. So far the response has been overwhelming. The video won’t be up for much longer — so if you haven’t seen it yet, this is your chance.
Nick explains why this mine is such a rare gold find, and why “too much” gold will soon be just the right amount for smart investors.
Make it your own,
Editor, Daily Profit Cycle