Smaller market cap gold companies are in demand (see here). Several companies have seen significant gains in the share price such as AIM listed company Greatland Gold (GGP).
Investors are experiencing some reasonable gains investing in gold stocks.
Is this because:
- Investors transferring their investments from automobile, aviation, leisure stocks etc that have been hit hard by the impact of Covid19?
- Gold price increased to c$1700 and some predicting will reach $3000+
- Governments printing money, leading to its value decreasing and gold being seen as a safe haven.
What small cap gold companies should investors consider investing? This article (see here) provides information on some possibilities.
If you wished to make the returns gained by GGP holders? You could argue that investing in GGP now is too late as the early investors have already made the significant gains. If you invested now and the share price reached 18p you would double your money. Would investors stand a better chance making GGP past returns investing in another small mcap business that hasn’t yet started to show significant returns?
For example Arkle resources shares went up 104% on Friday.
What small MCAP gold explorers have I invest in?
I did research and used others research and then invested in:
- Cobra Resources (COBR) – (for reasons why see here)
- Metal Tiger (MTR) – (for reasons why see here)
- Southern Gold (SAU)
- Greatland Gold (GGP)
- Arkle Resources(ARK)
- Los Cerros (LCL)
- Aurelius Minerals (AUL)
Metal Tiger are an investment company who focus on undervalued natural resource opportunities. They provide support to companies to maximise the value of their natural resource interests.
Currently Metal Tiger are invested in at least 9 gold exploration businesses.
For one investment I have exposure to several gold opportunities as well as Metal Tigers significant copper prospects etc. The business has significant funding and shareholders are therefore unlikely to see their investment diluted.
The investments in Southern Gold, Greatland Gold, Arkle, Los Cerros and Aurelius have been taken for the following reasons:
- MTR have invested in these companies having carried out due diligence. It’s their job to identify undervalued companies, provide investment and increase value. Why as a private investor would I be able to identify better investments?
- Terry Grammer renowned geologist has been involved in the investment decisions. He has a proven track record.
- MTR made significant returns on their investment in MOD Resources when it was acquired by Sandfire Resources. Shareholders have to date received no benefit, as the share price hasn’t yet reflected the increase in Metal Tigers asset base. The strategy in taking a stake in some of their investments safeguards against this happening again.
Whatever gold investments you choose to make, good luck I hope they are profitable.