How much money will you make when gold hits $6,000?
Former U.S. Army Special Ops veteran and investor Jim Woods has a few ways to make asymmetric gains from gold’s historic bull market run with his “$6,000 Gold Stock Picks.”
The Teaser
An obscure, yet easy-to-invest-in group of companies, whose share price soars on even the smallest of gold price moves.
A 30-plus-year veteran of the markets as a broker, hedge fund trader, author, and writer, this isn't Jim Woods' first rodeo.
We have previously reviewed his “Silver Storm” Trade and “China Shock” Stocks teasers.
The yellow metals' cyclicality of 15 year bull runs followed by 7-8 year down markets is nothing new to Jim.
But something is slightly different this time around. Based on Jim's research, we're smack dab in the early innings of the mother of all gold bull markets.
Dwindling supplies caused by environmental mining restrictions, persistent, not “transitory”, inflation, and geopolitical instability all point to gold being in the midst of a perfect storm.
Now, gold is currently trading in a narrow range around $4,500 an ounce, so a move to $6,000 won't make anyone rich.
However, Jim says he has his eye on a group of companies whose share price soars on even the smallest gold price moves.
Names like…
- B2Gold, which shot up 770%
- New Gold, up 1,048%
- Eagle Plains Resources soaring 2,066%
All are prominent recent examples of outsized gains while the price of gold only grew 89% over the same time frame in 2020.
Now, Jim has found a few small players that he's utterly convinced hold the same kind of potential and current events have merely set the stage for the greatest gold bull market ever.
The Pitch
All the details on these have been organized inside a special report called Gold $6,000: Two Ways Smart Investors Can Ride Gold’s Historic Run All the Way to the Bank.
There's only one way to get it and that's with a subscription to Jim's investment research newsletter, Forecasts & Strategies.
A trial subscription includes issues “chock-full of moneymaking recommendations” and a 30-day money-back guarantee for $249 upfront for the first year.
A Gold Bull Market for the Ages
If gold is going to race to $6k and beyond, it's going to take more than a little blip in interest rates or a small drop in the S&P 500.
It's going to take the kind of event that shakes markets to their very core and sends investors both big and small scrambling to safe haven investments like gold.
We know that the one thing markets hate most is uncertainty.
At the moment, the biggest source of this across the world is geopolitical instability. From Russia and Ukraine to Israel and Lebanon and the ongoing conflict between the United States and Iran.
By some accounts, 8 out of 10 Americans are now worried about World War 3.
From a gold perspective, the period of the first two world wars (1914-1945) was when the metal earned its reputation as the ultimate store of value.
Looking back, we know that gold was used to settle international trade of goods and war supplies between countries who no longer trusted that each other's fiat currencies would hold up without massive depreciation.
Despite efforts to suppress its value during this tumultuous period through the introduction of price controls, like the Gold Reserve Act, which attempted to fix the retail price at $35 an ounce, black market prices were often two or three times higher.
Ultimately, gold markets become more volatile, but more valuable during times of upheaval.
A solid case can be made that we are in such times today.
Since January 1971, the average annual gold price increase has been about 8%. Over the past twelve months, gold has appreciated by 35%.
That's 4.5x more than the median of the past 54 years and Jim's two sub-$30 companies are positioned for even bigger gains.
Revealing Jim Woods' $6,000 Gold Stock Picks
Gold miners are leveraged plays on gold, so if capturing maximum gains is the goal, Jim's picks and shovels plays could be the vehicles to get us there.
The Miner That Has It All
- It owns six mines that produce nearly 2 million ounces of gold per year.
- The vast majority and future developmental projects are located in Canada, the United States, Brazil, and Chile.
This sounds like Kinross Gold Corp. (NYSE: KGC).
- Kinross' annual production has been around 2.0-2.1 million ounces.
- It's core producing assets are in the U.S. (multiple mines), Brazil (Paracatu), and Chile (La Coipa), with a development project (Great Bear) in Canada.
The Tiny $12 Player
- It mined over 369,000 ounces of gold in fiscal 2024.
- The company has aggressive plans to expand from Latin America into West Africa.
- The CEO's compensation plan is largely performance-based, with a requirement that he own enough shares to cover his annual base salary by 3x.
Based on the unique clues, Fortuna Mining (NYSE: FSM) is the pick.
- Fortuna mined and sold approximately 369,637 ounces of gold in fiscal 2024.
- The mid-tier producer operates three mines located in Argentina, Peru, and Côte d'Ivoire, respectively.
- The company has a share ownership policy in place stating that CEO share ownership must equal three times the gross amount of annual base salary.
Beat Gold by 23x?
Not only possible, but highly probable.
This is how Jim describes the likelihood of gold going to $6,000.
Based on continuous currency debasement, ongoing geopolitical tensions, and the Trump effect, I would say it is highly likely.
It may take longer than previously thought at the beginning of the year when metals were making new highs on almost a daily basis, but we'll get there.
However, as Jim says:
Most gold mining companies are not good buys
Are his picks exceptions to the rule?
Kinross has roughly 30 million ounces of proven and probable gold reserves worth about $133.5 billion at today's prevailing market price.
Their all-in production costs are $1,600 per ounce, bringing the value of the reserves down to $84 billion, which is still more than double the miner's current market cap.
Moving along, Fortuna is a similar setup.
It's proven and probable reserves equate to 3 million gold equivalent ounces. That's worth $13.5 billion today.
Assuming slightly higher production costs of more than $2,000 per ounce, the value of the reserves would still be just over $7 billion. More than double the miner's $3.7 billion market value.
Fortuna is the smaller of the two, with less leverage, above-average management effectiveness in terms of return on assets, and a trailing P/E below 10. But there's no need to choose when both are trading for low absolute prices.
Quick Recap & Conclusion
- Jim Woods is teasing two ways to make asymmetric gains from gold’s historic bull market run with his “$6,000 Gold Stock Picks.”
- Historically, gold markets become more volatile, but more valuable during times of upheaval. We are in such times today.
- Certain gold stocks outperform gold during such times and Jim reveals two such picks inside a special report called Gold $6,000: Two Ways Smart Investors Can Ride Gold’s Historic Run All the Way to the Bank. A subscription to the Forecasts & Strategies investment research newsletter is required to access it, which costs $249 for the first year.
- Today you don't pay anything, as we revealed both picks for free! They are Kinross Gold Corp. (NYSE: KGC) and Fortuna Mining (NYSE: FSM).
- Both miners are selling for less than half their proven and probable reserves less production costs, providing a sufficient margin of safety with substantial upside.
Will the price of gold exceed $6,000 this year? Tell us why or why not in the comments.