Nick Germain: Smaller Explorers Will Provide Multiple Returns in this Gold Market
Nick was a co-founder in 2008 of a very successful internet gaming company and subsequently sold his interest in the company in 2011. That was when he became interested in economics and concerned about the world economy. His pursuits in 2014 led him to study the tiny junior space around the world.
He feels that the cannabis and crypto markets have drawn some interest from new investors. There is a bit of an uphill battle with attracting young investors to invest in resources, but that may improve.
Investing in resources is all about perception versus reality, and being an outsider may be an advantage. He has become a bit of an expert on emerging regions and has studied how these countries regularly go through their economic cycles. Opportunities abound if you can find the right companies with the right properties in countries where there has been little past exploration. Namibia and Botswana are two such under appreciated developing countries with resources.
He focuses on the supply side of resources, and copper has a large gap between tier one and tier two discoveries. Majors will need new discoveries and the next explorer that makes one could be huge.
The recent upward moves in gold and silver are exciting. This is why he is completely focused on the precious metals as this bull is just getting started. He says, “You might miss out on something else but the best risk to reward will be in gold and silver. Examining the smaller explorers will give you the largest multiplier in a rising gold price environment.”
He likes a set of lesser-known books written by Timothy Green that discuss the gold market.
Time Stamp References:
0:40 – His interest in resource space.
2:20 – Young people and investing in mining.
5:30 – Value investing in other countries.
8:20 – Copper opportunities and supply.
10:40 – Potential for gold for the year.
13:20 – Favorite author.
Talking Points From This Week’s Episode
• New investors will be drawn to gold eventually.
• There is some new talent in the resource space.
• Opportunities in resources in specific countries.
• Small copper explorers hold enormous potential.
• Gold bull market is just beginning.
Nick, the Mining Book Guy, is an independent private investor in the mining space. He loves to share company and book ideas. He especially loves to hunt for the next ‘big discovery’ in foreign jurisdictions around the world.
Nick has an undergraduate degree in Applied Statistics and a Masters in Business Administration from the Rochester Institute of Technology.