Adam Hamilton, a seasoned expert in gold stocks with over two decades of experience, emphasizes the importance of strategically selecting investments within the gold mining sector. He advocates for focusing on mid-tier miners, which he believes offer superior growth potential compared to major miners. These mid-tier companies, operating at 300,000 to 1,000,000 ounces annually, are more agile and capable of expanding their operations effectively.
Hamilton highlights their lower costs and better ability to generate cash flows, making them a more attractive investment option. In contrast, major miners often struggle with high costs and face challenges such as overpaying for mergers and acquisitions (M&A), leading to diluted earnings. Their large market capitalizations make it difficult for them to grow production sustainably, unlike mid-tier miners which can achieve significant growth through new projects.
Hamilton also discusses the cyclical nature of exploration spending within the industry. Recent years have seen reduced exploration activity due to unfavorable market conditions, potentially leading to a future supply deficit. He underscores the importance of diversification in investment strategies, advising against overcommitting to any single asset. Instead, he recommends spreading investments across various sectors to mitigate risk. During periods like the summer doldrums, Hamilton suggests that investors use this time for thorough research and homework to identify undervalued opportunities. He encourages a patient approach, noting that buying windows may be brief once favorable conditions arise.
Timestamps:
00:00:00 – Introduction
00:00:52 – Historical Gold Moves
00:04:52 – Corrections & Sentiment
00:06:46 – Apathy & Historic Sentiment
00:12:42 – Gold & Trade War Fears?
00:14:43 – Summer Doldrums
00:17:42 – Silver Price Levels
00:20:37 – Short Squeeze?
00:21:45 – Fed, Gold, and Data
00:25:26 – News & Your Attention
00:28:00 – Miners & Leverage
00:30:36 – Momentum in Metals
00:32:32 – Crypto Market Impacts
00:37:26 – Majors & Mid-Tiers
00:41:32 – Majors & Exploration
00:43:20 – Conclusion & Wrap Up
Guest Links:
Website: https://zealllc.com/
Articles: https://zealllc.com/essays.htm
Adam Hamilton founded Zeal LLC in early 2000. He started investing in stocks when he was 12 years old, using money from summer jobs. He grew up fascinated by stock markets, dreaming of making a living in this unique realm where compensation is not limited by time on task like most other professions.
After growing up in a small-town banking family in rural North Dakota, Adam left for school at the University of Colorado at Boulder. While watching the markets and trading, he studied finance, accounting, and entrepreneurship. Adam went on to be a Big Six CPA and consultant after graduation, never stopping learning.
By early 2000, Adam finally had enough experience and capital to found Zeal at 25 years old. Rather than hide his research and trading work in a hedge fund, Adam wanted to help others thrive in the markets. So he started sharing his now-world-famous market research work through very-affordable newsletters.
Customers raved, and many millions of dollars of newsletter sales later Adam was blessed to become a self-made millionaire. He is very thankful to be living his dream, and plans to research, trade, and share wisdom through newsletters for the rest of his life. Adam is a Christian saved by Jesus Christ. He and his wife are greatly blessed with 2 children, and they live in Colorado.
