THE 1,000% SECRET HOW TO TAKE ADVANTAGE OF THE SPECULATION OF THE CENTURY

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1 HOW TO TAKE ADVANTAGE OF THE SPECULATION OF THE CENTURY BY E.B. TUCKER

2 There's a sector of the gold market that can produce massive returns... It runs right alongside gold bullion. But when gold moves an inch, this sector can move a mile. And it shares almost everything in common with gold. The difference in this market is that you can risk a small amount of money to make a lot. We call it the 1,000% secret. You see, it s unlikely that gold will move up 1,000% in the next year or two to around $15,000 per ounce. What s more likely is gold moving up 10%, 20%, or even 30%. Those are huge moves in the gold market. And they d send this sector up as much as 10 times that amount. We think gold prices will soar over the next few years. But gold mining stocks will perform even better WHY GOLD STOCKS PERFORM BETTER You can make 2x, 3x, or even 5x more money in gold stocks than in gold bullion. And the best part is that you don t have to buy options, use debt, or learn any complicated trading strategies either. And it only involves a little more risk than buying gold bullion. But the potential upside is massive Gold stocks aren t much different than any other type of stock. They just happen to be shares of companies that produce gold. These companies mine the ore that contains the metal and sell it to refineries. The process is similar to oil or any other natural resource in the ground. The reason why gold stocks perform better than gold is simple: They offer leverage to the gold price. And the returns can be spectacular. The word leverage usually means borrowing. But that s not the case in the gold market. If you aren t familiar with the concept of leverage in gold stocks, here s a quick example of how powerful it can be: Say the price of gold rises from $1,300 to $1,400. That s roughly an 8% gain. If you own physical gold, you re up 8%. Now, say a mining company owns a million ounces of gold in the ground, and gold is trading at $1,300. The value of the gold in the ground isn t simply $1.3 billion (1 million ounces x $1,300/oz.). Instead, the gold in the ground is worth much less than that, because it will cost a lot of money to extract. 2

3 Say it costs the company $1,250 per ounce, all-in, to mine the gold. At a gold price of $1,300, the company has a potential profit of $50 on each ounce of gold. However, if the price of gold rises only 8% to $1,400, the company s profits per ounce increase by 200% ($1,400 - $1,250 = $150 profit per ounce). This small move in gold can cause the stock price to increase 40%, 50%, or more. This is why a small increase in the price of gold can cause a gold stock to soar many times that amount. It s happened before A HISTORY OF GOLD MARKET BOOMS Below are the historical returns for gold producers during four separate cycles when gold boomed: ; ; mid-1990s; and These are not hypothetical returns. They are real. First up, the king of all gold bull markets: Gold more than tripled during this period. But gold stocks more than quadrupled. Returns of Producers from 1979 to 1980 Company Price on 12/29/1978 Sept Peak Return Campbell Lake Mines $28.25 $ % Dome Mines $78.25 $ % Hecla Mining $5.12 $ % Homestake Mining $30.00 $ % Newmont Mining $21.50 $ % Dickinson Mines $6.88 $ % Giant Yellowknife Mines $11.13 $ % AVERAGE 322.5% Gold 214.0% This wasn t the only time gold stocks soared From 1981 to 1983, gold producers returned over 70%, on average. And this happened in less than two years. Companies like Agnico Eagle and Campbell Red Lake climbed over 120%. And Sigma shot up 73%. These profits stemmed from a mere 10.8% rise in gold. 3

4 There was another boom in the 1990s. The average gold producer went up more than 200% Cambior rose 124%. Kinross Gold returned more than 190%. And Manhattan skyrocketed over 760%. All while gold only rose 8%. Then another boom from rivaled the returns of the early 1980s. Gold returned 158%, while the average gold producer returned over 400%. Newmont went up over 270%. Gold Fields gained over 500%. And Goldcorp soared over 800%. As you can see, an increase in the price of gold (even a small one) can lead to huge returns. GOLD STOCKS MOVE IN EXTREME CYCLES You can make a fortune in the gold market. But you must understand market cycles. Gold stocks move in extreme boom and bust cycles, more so than most other markets. Contrast that with noncyclical businesses like those that sell toothpaste or laundry detergent. Demand for these types of everyday items is steady whether we are in a bull or bear market. Demand for natural resources like gold is highly cyclical. Just like with oil, investors pour money into gold miners during boom times. A gold stock might soar 500% over a three- to five-year raging bull market then collapse 90% in six months in a nasty bear market. That s similar to what we ve seen over the past five years. The 2011 to 2015 bear market sent companies out of business and handed investors huge losses. While the fall in the price of gold was drastic, the fall in gold mining stocks was even worse. Over that same period, the NYSE Arca Exchange Gold BUGS Index the gold mining stock index fell 83%. So as you can see in the following chart on page 5, gold mining stocks (shown in blue below) fell at twice the rate of gold (shown in black). 4

5 However, that s only the average. Some companies fell even more. Now the gold market is changing course. As we said above, gold stocks have been in the second-deepest bear market since It s even worse than the selloff following the 1980 mania. In other words, this is an incredible opportunity. Gold stocks are preparing for the next boom. But you don t just want to buy any gold stock It s important to pick the best gold stocks. Because not all gold stocks perform the same in a cycle. Like any other industry, the stocks of stronger companies will go up more than the weaker ones. And there is a small area of the gold market where gold stocks can go vertical. It s here where investors can make 10x, 20x, or even 50x their money. GOLD JUNIORS: A junior gold stock company is a very small natural resource company. Most are exploration companies looking to discover a rich deposit of gold and other resources. The term also covers small producers: companies that have already discovered a resource and are extracting it. 5

6 Juniors often have market valuations of less than $50 million for the whole company. Mainstream investors dismiss juniors as penny stocks. They think they re too volatile to touch. To a degree, that s true. Some juniors do trade for pennies. And all of them, even the ones that trade for several dollars a share, are extremely volatile. WHY JUNIOR GOLD STOCKS ARE SO VOLATILE A typical exploration junior has no net income. It has no significant asset value. Even the cash it has in the bank isn t really an asset; it s an obligation. The company will use that cash to dig holes in the ground, hoping to make a big discovery. Now, what is this company worth? Not much. But What happens if it makes a big discovery? If the discovery does have economic value, that value will be greater than zero. So the change in value is enormous and share prices soar. That s why we speculate on juniors. They have the potential to go vertical like nothing else If you are willing to take the necessary risks, junior gold stocks are the secret to 1,000% gains. Doug Casey calls them the most volatile stocks on earth. He s not joking. Junior gold stocks are where you can risk small amounts of money to make a small fortune. Doug Casey often says, rather than risk 100% of your portfolio for 10% gains, risk 10% of your portfolio for 100% gains or more. In fact, with junior gold stocks, you can risk 10% of your portfolio for 1,000% gains. The junior sector is a 10-bagger hunting ground. It sounds mythical, but they are real. For example, during the gold bull market, Copper Resources returned an incredible 13,000%. Silverado Mines gained almost 4,000%. And Eagle River Mines went up over 3,400%. In the mid-1990s gold bull market, Cartaway soared 26,000%. And Pacific Amber shot up over 4,300%. These are just a few examples. There were many more gold junior stocks in each gold bull market that turned into 10-baggers. 6

7 But junior gold stocks aren t for everyone. Unless you re comfortable with contrarian speculation, you are guaranteed to lose money. If you speculate on junior gold stocks, you ll lose on some picks. You may even lose on most picks, if you push for maximum returns. But the opportunities for 1,000% returns will more than make up for those losses. With junior miners, the upside potential is huge. But remember, we are speculating. It s incredibly risky. It s likely to be volatile on the way up and down. Don t bet the farm on any trade. And you shouldn t put your emergency expense funds, kid s college tuition, or any other money needed to pay the bills in a junior gold speculation either. As we explained earlier, junior gold stocks are where you can risk small amounts of money to make a small fortune. You can do this by investing in several junior gold stocks at the same time. Let s say you have $10,000 to speculate with. Money you could lose but still sleep peacefully at night. Instead of risking it all on one stock, invest $2,000 in five different junior gold stocks. This way, you spread your risk. And increase your chances of hitting a 10- bagger. If one stock goes up 1,000% and the other four go to zero, you would still double your money. If two stocks go up 1,000% and the other three go to zero, you would triple your money. That s the power of junior gold stocks. And why you can make life- changing returns in this sector of the gold market. FOUR LUCRATIVE OPPORTUNITIES TO START TAKING ADVANTAGE OF TODAY In the gold mining business, it's important to increase your odds of success by spreading your risk... There are incredible opportunities out there today. We're talking about the smaller firms looking for the next big deposit. Most of these types of companies come up empty handed. Few will come out on top. Below, we've identified four winning names. These are the companies that are poised to deliver big returns in the years ahead. They have a track record of success finding and developing new gold deposits. (Please note: While we recommend buying the companies below at this time, we will not be tracking them in the Casey Report portfolio. We have them as "Interesting Speculations." If they're over their buy-up-to prices by the time you read this, be patient and don't chase.) 7

8 1) Atico Mining Corp. (ATY.V) or (ATCMF) Atico is a small gold-producing company focused in Latin America, specifically Colombia. The company produced over 10,000 ounces of gold last year at its main asset, the El Roble mine, just outside of Medellin in central Colombia. The mine sits in a region known for its gold, but years of conflict made exploration difficult. Today, Colombia is a much safer country. In fact, it s one of the fastest-growing countries in Latin America. Atico is actively exploring the area surrounding its El Roble mine. If successful, it will grow annual gold production and surprise the market. That s in addition to its other exploration activities. BUY Atico Mining Corp. (ATY.V) up to C$1.10 or (ATCMF) up to US$ ) SilverCrest Metals Inc. (SIL.V) or (SVCMF) SilverCrest Metals is what remains of SilverCrest Mines Inc. after blue-chip silver miner First Majestic Silver Corp. (AG) bought its primary asset. The company s management team discovered that asset last decade, developed it, and put it into commercial production. It s proof the people running SilverCrest know how to find gold and create value for shareholders. SilverCrest Metals Inc. has several potential silver and gold discoveries in Mexico. We re confident over time this previously successful management team will have a good chance of discovering another asset. BUY SilverCrest Metals Inc. (SIL.V) up to C$3.00 or (SVCMF) up to US$ ) Aurania Resources Ltd. (ARU.V) or (AUIAF) Legendary mining speculator Keith Barron has a nose for gold. In 2006 he discovered Fruta del Norte, a rich gold deposit in Ecuador. Mega-miner Kinross paid his tiny Aurelian Resources $1.2 billion for the project. Now, Dr. Barron is at it again. He spent the good part of the last decade studying Ecuadorian history. Specifically, he got his hands on original 17th-century texts documenting Spanish expeditions. A collection of rare notes detailed several extremely rich gold mining camps scattered across one region of Ecuador. As Spanish control waned, jungles reclaimed mining towns. Modern gold explorers, like Dr. Barron, slowly found most of those camps. One of the largest is still missing, buried deep in the jungle. Barron thinks he can find it. Based on how things went last time, we think his newly capitalized Aurania Resources Ltd. (ARU.V) has the hallmark of a good speculative bet. BUY shares of Aurania Resources (AUIAF) up to US$4 or (ARU.V) up to C$5. 8

9 4) Fiore Gold (F.V) or (FIOGF) Gold producer Fiore Gold was once called Fiore Exploration. Over the summer it merged with a private company called GRP Minerals. There seems to be some confusion around Fiore, which could work to our benefit. I called CEO Tim Warman to get the real story. Earlier this year, GRP bought the assets of Midway Gold out of bankruptcy for a paltry C$5 million. Those assets included the Pan mine in Nevada which should produce 40,000 ounces of gold in Fiore Gold has a three-part strategy. Produce gold, drill its land package, and acquire similarsized gold producers in Nevada. With Pan as its producing asset, the company has cash flow to explore and develop prospective gold deposits. Its Gold Rock asset, also in Nevada, will get immediate attention. The prospects for acquiring similar assets looks good. Some of the company s key stakeholders have a track record of building companies this way. If they re successful, the stock could look like Endeavour Mining in early The same stakeholders steered Endeavour from early days to a market cap of C$2.6 billion. The time to own Endeavour was , when its leaders acquired and managed their way from a C$55 million market cap to C$260 million. The company s shares shot up 358% over the same time. In addition to Fiore having a similar ownership roster as Endeavour, Warman was part of the billion-dollar Fruta del Norte discovery in Ecuador. To top things off, major gold producer Kinross owns 9.9% of Fiore Gold. We want to be in, too BUY shares of Fiore Gold (FIOGF) up to $1.65 or (F.V) up to C$2. Customer Care: Toll-Free: (888) , International: (602) , Mon Fri, 9am 7pm ET. subscribers@caseyresearch.com Casey Research, 55 NE 5th Avenue Suite 100, Delray Beach, FL 33483, USA. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from the publisher. Information contained herein is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. It is not designed to meet your personal situation we are not financial advisors nor do we give personalized advice. The opinions expressed herein are those of the publisher and are subject to change without notice. It may become outdated and there is no obligation to update any such information. Recommendations in Casey Research publications should be made only after consulting with your advisor and only after reviewing the prospectus or financial statements of the company in question. You shouldn t make any decision based solely on what you read here. Casey Research writers and publications do not take compensation in any form for covering those securities or commodities. Casey Research expressly forbids its writers from owning or having an interest in any security that they recommend to their readers. Furthermore, all other employees and agents of Casey Research and its affiliate companies must wait 24 hours before following an initial recommendation published on the Internet, or 72 hours after a printed publication is mailed. 9

SECRET GOLD TRADE EARN 27X MORE MONEY AS GOLD SOARS TO $10,000 BY E.B. TUCKER

DO U G CAS E Y S SECRET GOLD TRADE EARN 27X MORE MONEY AS GOLD SOARS TO $10,000 BY E.B. TUCKER We are on the cusp of a powerful bull market in gold. It could be the biggest in a century. This won t be