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Aug 23, 2023

Launching Gold & Silver Mining Ideas: Long

Inok Editor's Note: This article is meant to introduce Don Durrett's Investing Group service, Gold & Silver Mining Ideas. I'm excited to announce my Investing Group service - Gold & Silver Mining

Inok

Editor's Note: This article is meant to introduce Don Durrett's Investing Group service, Gold & Silver Mining Ideas.

I'm excited to announce my Investing Group service - Gold & Silver Mining Ideas. With this investing group, I'm free to post ideas and commentary on the stocks I cover in the precious metals space, including small caps, along with stock lists and groups of stocks that I find appealing.

I'll deliver what I think are excellent risk-reward stocks with potentially big upside potential. I plan to write articles for all of the stocks in my model portfolio, which currently consist of about 10 links to articles in the portfolio. This link count will be growing.

The service is available monthly for $35 or a yearly subscription for $300.

This service is for investors who are interested in PM (precious metals) mining stocks. My approach is unique, whereby I attempt to identify future upside potential using future PM prices, future production, and future costs. I put low emphasis on the short term and focus on long-term investing (3-5 years) for outsized returns.

I will provide leads to many stocks that I think have high upside potential and strong risk-reward profiles. My personal portfolio of PM miners currently contains more than 150 positions. I analyze all of the PM miners and know them all fairly well. I plan to give you exposure to those that I like the best.

What you're going to get is my experience of analyzing PM miners for upside potential. I've been doing this for nearly 20 years and consider myself an expert.

To provide analysis of gold and silver mining stocks for long-term (3-5 years) high-upside returns.

I've been analyzing PM mining stocks since 2004, which is almost 20 years. I have one of the few books that teaches investors how to invest in PM mining stocks. I consider myself an expert on PM miners. The database on my website has about 900 PM miners, and I analyze all of them.

Very few people know the entire sector as well as I do, or the opportunities that exist. My 10-bagger list currently has 89 stocks on it. I also maintain 1-bagger, 2-bagger, 3-bagger, 5-bagger, developer, exploration, and optionality lists. The only way I can do this is with extensive ongoing research. I do this full time.

I'm bullish gold and silver. It's my belief that $3,000 gold is coming in the near term because of MMT fantasy economics. MMT is the belief that debt doesn't matter because we have a digital printing press. In 2004, our national debt was about $4T. Then we adopted MMT in 2008, and now our debt is about $32T and growing at a rapid pace. This debt expansion is untenable, in my opinion, and the reason I like gold so much.

My target price for silver is directly related to gold. I believe that gold leads and silver follows (because the gold market is huge and the silver market is tiny). I'm also a believer in the GSR (gold-silver ratio) getting squeezed. My silver target of $100 is directly related to the GSR. I believe the GSR will squeeze to 30 (it squeezed to 39 in 2011 and 17 in 1980). So, if gold reaches $3,000 (my expectation), then the GSR should take silver to $100.

My investment strategy is to identify PM miners that have high upside potential and strong risk-reward profiles. I generally target at least 300% returns.

My target audience is someone who already owns a PM mining stock and is not risk averse. I consider investing in PM mining stocks to be speculation investing.

Because I'm after large returns, short-term investing does not make sense. Instead, I focus on 3-5 years for a stock holding.

I use estimated future costs, estimated future production, and estimated future PM prices to arrive at my upside targets for a stock.

My stock analysis includes all of the pivotal data that needs to be analyzed to identify any impactful red flags. My method of obtaining the risk/reward for stock comes from years of experience. I compare a company's strengths (too numerous to mention) and weaknesses (red flags).

My method of valuing PM miners is unique, which is explained Chapter 10 of my book: How to Invest in Gold and Silver: A Complete Guide With a Focus on Mining Stocks. It's one of the only books I'm aware of that teaches investors how to analyze and value PM mining stocks.

In short, I value mining stocks by analyzing them comprehensively using extensive experience to identify their risk/reward profile. Then I estimate their future upside potential based on their estimated future free cash flow using estimated production, estimated costs, and projected future PM prices. I make a lot of assumptions, which makes my investment strategy speculative investing.

There's zero doubt that you can easily lose money speculating on PM miners. Conversely, if PM prices surge, the upside potential can be huge. I consider it comparable to investing in options. You can easily lose money, but you can also make a lot of money. The only reason why I do it is because I believe that PM prices are going much higher. Without that strong belief, I would not be doing it.

Every PM analyst has a methodology for analyzing PM miners. It's important that your investment strategy somewhat aligns with my methodology. It's not just my analysis methodology that needs alignment, but also our investing strategies. For instance, I tend to avoid exploration stocks and short-term plays. Currently, on my favorites list, I have 44 stocks, and only one is an exploration stock. For these reasons, you may want to begin with a subscription to see if we are in alignment.

If you're reading this via Seeking Alpha's mobile app, to try this service right now go to seekingalpha.com and enter Gold & Silver Mining Ideas in the site search to visit my Investing Groups service checkout page.

This article was written by

Owner of www.goldstockdata.com. Author of How to Invest in Gold & Silver: A Complete Guide With a Focus on Mining Stocks (available on Amazon). Expert on gold and silver mining stocks. A frequent guest on investment podcasts, with a large following on Twitter (currently 32K followers). Plus, my own Youtube channel.

Website: https://www.goldstockdata.com.

Twitter: https://twitter.com/DonDurrett

Youtube: https://t.co/TKA05E3Gsr?amp=1

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.