Crisis Investing

Issue 1 / February 2024

Dear Reader,

Today, we're launching a new advisory service called Crisis Investing, a nod to the book of the same name I wrote back in 1979. It enjoyed tremendous success, becoming a New York Times bestseller for 34 weeks.

After my second book, I started publishing a newsletter of the same name. I used the Chinese symbol for crisis as the logo. Interestingly, it’s a combination of two symbols: the symbol for danger and the symbol for opportunity. The danger is what everybody sees; the opportunity is never quite so obvious as the danger, but it’s always there.

Admittedly, it was a very different time back then, but one thing remains true: our world is still plagued by all sorts of crises that, despite the risks they pose, also present opportunities.

Speculating in crisis markets remains the ultimate way to make money, which means buying when nobody else wants to buy.

So, with this service, we'll be embracing these contrarian roots once more.

The goal isn't just to help you pick mining stocks; it's about projecting market wisdom and finding opportunity where most see nothing but danger.

That being said, I realize that people tend to have a thing for buying mining stocks.

Now, if you know me, you probably also know my stance on mining. It's a crappy industry. All that capital spent on not finding anything, and if you do find something, that's where your trouble really starts.

But people like them because of the amount of volatility they offer and the potential to make bags of money. And, frankly, that's the only reason you should ever invest in mining stocks.

Coincidentally, now is a great time to do just that. That's because mining stocks are extremely cheap right now. Just take a look at this chart of the S&P/TSX Venture Composite Index.

The index tracks the Canadian TSX Venture exchange, home to numerous small and mid-cap mining stocks, and it’s down more than 83% from its 2007 highs.

I have always been a big believer in making the trend your friend... and the real money is in getting in ahead of the masses.

I believe that mining is in such a spot right now, and gold mining in particular.

And as you likely know, I'm a fan of gold. It's the one and only true form of money, standing against the notion that governments can endlessly accumulate debt, bail out banks, and print money like there's no tomorrow.

So, when I look at the companies in the gold sector these days, I'm interested... It aligns with my approach of looking for solid speculations in sectors that aren't on everyone's radar. This is what allows us to buy cheap and, if we are right, sell high as the crowds rush in.

And that's exactly why our focus today is going to be on a gold mining stock. It has a great growth story and is dirt cheap for the amount of gold it's pulling out of the ground.