Investing in gold royalty companies is something we think every investor should do. And our guests today Rick Rule and David Cole are going to cover ground on the best practices for investing and talk in detail about David’s company EMX Royalty Corporation.
Rick Rule is the CEO of Sprott US Holdings Incorporated and has been a featured guest on our channel multiple times. David Cole is the President & CEO of EMX Royalty Corporation.
When it comes to investing in gold, the royalty model offers investors the best returns. This is because royalty companies generally have very good operating margins. Sometimes as high as 90%. And there are no operational risks with the exception of the bankruptcy of bad businesses.
Rick has handpicked EMX Royalty as one of the top Gold Royalty companies to invest in. And with the gold bull market coming in the next 18 to 24 months, EMX stock is set to explode.
The royalty model is set up as a financial institution to provide finance advancement of projects – exploration, into production, increased production. A royalty company gets a piece of the pie right off the top and a streaming company has a contract to purchase precious metals where there is a strike price involved.
In the eight prior precious metal recoveries in the last 45 years, the smallest recovery of gold was a 180% increase in the price and the best recovery was a 1200% increase in the price
And currently, the gold market is up 25-30% from the lows of the latest bear market. Which could means that the price of gold could still have much more room to grow.
Something important to note: Precious Metals Bull Markets are volatile.
An upward movement in the gold price means that people are losing faith in their currency and this happens as a long drawn out fear-driven event. This along with artificially low-interest rates and skyrocketing debt coupled with deficits spark interest in gold which leads to bull market rallies.
At the present time, precious metals are under-owned and are less than one half of one percent of all savings and investments in the United States. The three-decades-long mean of investment market share of gold is between 1.5% and 2% which means more buyers will flood into gold in the coming bull run. This massive increase in demand will lead to a price increase.
And with the US election coming to a head at the end of 2020, expect A psychological impact to happen on the price of gold along with more quantitative easing and more debt. Either candidate winning isn’t likely to offset the gold bull market.
What should retail investors do to prepare for the coming precious metals bull market?
1. Invest before you speculate – don’t count on being lucky.
2. Speculate with money you can afford to lose
3. Make a plan with every single investment; How long do you need to hold the stock? What is going to change along with new information? What are the acceptable price ranges?
You need a strategy on the way in before you make buying decisions.
4. It is important to cut your losses early so you can deploy that capital into a new winner.
What are the questions that investors should ask of companies they are investing in?
1. What is the company worth if it had to be sold today?
2. What will be a competitive advantage in the next 1-2 years for your company? What is the secret sauce inside your company?
Is silver losing its title as a precious metal? Silver used to be used in the photographic process and now with digital photos, the silver-gold ratio has taken a hit. However, new uses of silver will be found which could create a large demand for silver. Silver has lagged gold in all the precious metal recoveries in the last eight recoveries. Gold moves with fear & silver moves with information.
Access to financial products and information for two billion of the world’s lower-class people could lead to larger rallies than anticipated in the precious metals market. With the advent of the smartphone, everyone around the world can now learn about investing and make more informed decisions.
With that in mind, along with the gold bull market at hand, EMX Royalty is a great stock and has tremendous upside.
What can investors expect from EMX Royalty this summer?
1. Continued Deal Flow
2. Organic growth and acquisition growth of more royalties.
Economic Geology is the Alpha at EMX Royalty. This is their core advantage over other companies. Royalty growth through purchases and organic growth through existing projects is what will make EMX a winner.
Ticker symbols
NYSE: EMX
TSX-V: EMX
If you liked this video, check out more from us here:
Gold Trading At 7 Year High | WHERE TO INVEST YOUR MONEY – Mickey Fulp
MASSIVE OPPORTUNITY: Gold Stock Deep Dive – Liberty Gold
How To Make Money Investing In Gold 2020
Investing For Millennials: Gold Cash Knowledge
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