First Mining stock purchases

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#1 Sat, May 16, 2020 - 3:11pm
JH95
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First Mining stock purchases

Hello,

Any and all advice appreciated. I currently have a position in physical metal that I am comfortable with. I am bullish on both gold and silver.

I would like to potentially speculate on mining stocks. Currently, I do not have the knowledge to pick individual stocks. I am considering buying an equal amount of senior/junior gold and silver mining index funds. Is there any major flaw in this idea? Thanks

Mon, May 18, 2020 - 12:35pm
lawyer35
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Consider Denver Dave

You might want to consider a subscription to Denver Dave's Mining Stock Journal. He is great an evaluating individual companies.

Wright

Tue, May 19, 2020 - 2:01am
JH95
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Thanks I'll check it out.

Thanks I'll check it out.

Tue, May 19, 2020 - 11:52am
SilverSpec
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Check out the Thread I got started last year

Silver Mining Forum General, or something along those lines.

If you want to go down the rabbit hole, The Silver Manifesto and Second Chance by David Morgan and a co-author are available on Kindle for something like 10 USD. These are useful to figure out NAV values based on life-of-mine, resources/reserves production schedules, and 43-101 tech reports.

You are right to start with physical. You should have enough stacked gold, silver, and lead for a mad max scenario. After you have that position carved out, you can start thinking about equities and why you want to play in this space.

Having a good position in indexes (GDJ, GDJX, HUI, etc.) is usually a good start. This captures a lot of exposure without the risks associated with individual stocks. Sprott also has a miner and junior miner index which you make consider looking at.

When you are talking about individual stocks in a bull rally, we're talking about the difference in returns between 200-1,000%. Frankly, it's a high-quality problem of good versus better. The question is whether you want to do the leg work and risk analysis. The guiding principle is that junior miners are more highly levered to the price of the underlying asset. MAG, for example, is more speculative, but would offer a far higher return at $50 USD silver than, say, Pan-Am or First Maj.

Anyways, in short, have your physical position carved out. Then buy your core index positions. Familiarize yourself with the constituent companies in the indexes. Depending on your risk tolerance, this might be 25-75% of your paper metal portfolio. After that, read a couple books (i.e. the David Morgan books), subscribe to a newsletter (Dave Kranzler, David Morgan, I think Jim Willie?), start listening to weekly wrap up, subscribe to Mining Stock Education, Crux, and Palisade on youtube. Figure out what percent of your portfolio you want in majors and juniors, respectively. Figure out how much geopolitical risk you are comfortable with (Anglo-sphere most secure, but check out Marin Katusa and the Dollar Milkshake theory). And then after at least 80 hours research buy portions in maybe your top 10-15 gold/silver mining companies.

Don't even think of leveraged ETFs or options strategies until you have a comfortable foundation in the mining shares. This is like 4-5 years experience in the mining space and you have a good sense of contango and bullion bank shenanigans. You are likely not going to be ready for these in time for the next bull. This is gambling money for the unsophisticated investor and you should mentally prepared to part with it like you are entering a casino for a bachelor party.

Tue, May 19, 2020 - 11:54am SilverSpec
SilverSpec
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*GDX, GDJX

.

Tue, May 19, 2020 - 12:05pm SilverSpec
SilverSpec
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Sample Portfolio

50% bullion

6.25% GDX

6.25% HUI

6.25% SGDM

6.25% GDXJ (has a lot of silver exposure)

3% SGDJ

3% Your favourite royalty/streaming company

2% Your second favourite royalty/streaming company

5% (1.7/1.7/1.7) your 3 favourite gold majors

5% (1.7/1.7/1.7) your 3 favourite silver majors

5% (.8/.8/.8/.8/.8/.8) your 3 favourite gold/silver juniors

2% gambling money - leveraged ETFs, exploration companies

Wed, May 20, 2020 - 12:17am
bdcortright
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Another guide

there's a guy on seekingalpha called SomaBull. He provides great research and keeps a portfolio of 20 of his top mining names. He also shares with subscribers his personal portfolio which includes more names.

I have personally subscribed to his service for 3 years and generated a 90% return last year based off his miner picks.

Wed, Jun 24, 2020 - 9:56pm
JoeSix-Pack
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Best companies imo are AG,

Best companies imo are AG, FSM, AGI, BTG, PAAS, SSRM, SVM, AND FOR LEVERAGE, JNUG AND NUGT.

Sun, Jul 12, 2020 - 4:14pm
JH95
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Thanks everyone

I'm just seeing some of the replies now. I chose to just split my investments between GDX/GDXJ/SIL/SILJ. I've been adding on the pullbacks and have a 15% return so far. Can't complain, that would a great annualized return. Considering adding some more speculation in GOEX.

Tue, Jul 21, 2020 - 5:17pm
jhughes25
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Tanzanian Gold TRX

I have been watching almost every single day on a few stocks since May. I jumped in a few of them in May and really jumped in around June 18. I am curious if anyone else has thoughts on TRX? Also I am in EXK, HL, MUX. MUX has me a little concerned based off one of their mines being a bust on a recent investor call I found on youtube.... I found this well after the call was released. If we see a pull back in the next two weeks I plan on loading all I can on two of the above miners, I am currently trying to narrow that pick. Also, I want to load up on physical silver, APMEX seems very high over spot.... any advice to buy 1 oz bars?

Tue, Jul 21, 2020 - 6:28pm jhughes25
Matt Cottrell
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TRX

This interview on USA watchdog with Jim Sinclair definitely sparked some excitement in TRX at the time it was released (10th May). I bought the interview news and recently sold the excitement rally after it jumped out of its pennant formation for an almost 60% profit. I still have some shares, but would like to reload at lower prices ideally.

I like the idea of the stock and like the idea of Jim Sinclair being involved to a degree. But also dont forget this is the guy that started a rumor in Gold in the 80s that the Saudis were about to pile in, so he could unload his position. How true that is I cant say, but it was both amazing and deceptive if it was. However I dont believe this stock is over valued at current levels and Sinclair is likely not pulling a fast one right now lol. But a bit of a flush out could be likely if the Gold shares in general and Gold/Silver roll over for a bit like Craig has suggested.

Jim Sinclair – Debt Jubilees Everywhere
Wed, Jul 22, 2020 - 10:47am Matt Cottrell
jhughes25
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Tanzanian Gold TRX

Thank you Matt.

This silver run is wild to watch.... I wish I had larger holdings in EXK and HL. I bought HL @ 3 a few weeks ago.... Not ENOUGH.

If there is a pullback ill jump in. The overall stock market should eventually pullback ALOT from what I have read and studied. I am very green to investing and learning everyday. one thing I have noticed as others on this site mention a lot is that you never hear of the PM sector on the news channel.... Just the DOW, S&P etc.... held up buy money printing and the top five TECH/CLOUD companies.

Mon, Jul 27, 2020 - 8:47pm
JackPutter
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I have a holding of TRX

I didn't jump right in but examined what I could and decided that the announcement of "Gold is being produced" would be worth holding for the first production report.

I need to do more study on the materials that were recommended above to come up with a better opinion, but I've been looking at others reports and when they were made.

I also am watching the price moves right now and watching the other stock sectors performance to see if I can discern an amount that a general drop in the rest of the market affects these miners.

How loved is this sector become, or is it mostly a momentum trade?

Mon, Jul 27, 2020 - 9:23pm JackPutter
RangeRider49
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I think you can trust Jim

I think you can trust Jim Sinclair's effort to move this project into production with his best effort and that is saying something. I don't think you will be dissappointed.

Don't metal with me.

Thu, Jul 30, 2020 - 6:07pm jhughes25
BryanP
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Mux.

I have been holding some shares since 2016 when MUX was $4.00. Averaged down to $1.50, but seeing the overall action in silver, bought 50 MUX Jan 21 2022 4.0 Call for $.20 or $1k. Get a year and a half to make it back to 4 from 1.40. Might work out. Who knows? They were green 2 days ago. Already making good with FGOVF, TDRRF, and HL, hold for a while and see where we go. For some income, GGN is only $3.50 and pays a monthly return. Good luck finding anything to stack. I got all I could before it hit 18.

Wed, Aug 5, 2020 - 2:46pm
11IMIX
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Scratches head ?

Buy physical metal. Pay with cash. Store it in your underwear drawer. Sleep easy

I miss my old dog.

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