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Yesterday I told you that I was selling shares of the most popular gold ETF – the SPDR Gold Shares (NYSE: GLD). Instead, I’m buying shares of a unique gold company that I call the “British Columbia Gold Bank.”
If you’re uncertain about the future price of gold – but still want investment exposure to the commodity – you may wish to join me.
The reason is because this “gold bank” that I recommend is in its early growth phase, and could be positioned for big profits in the years ahead.
Most investors have never heard of a “gold bank” – let alone invested in one of these stocks.
Let me take a minute to explain exactly how this works. The following is an excerpt from my just released issue of $100k Portfolio – my real-money investment newsletter advisory service.
A few miles from the Atlantic Ocean, in the Maranhao State in northeastern Brazil, lies one of the most untapped gold mines in the world.
Jesuit settlers mined the area shortly after arriving to the coastal Brazilian region in the 17th century. Several other gold rushes followed, though modern exploration didn’t begin until the 1990s. Two years ago, a junior miner called Luna Gold began operating in this fertile region. They called it the Aurizona Gold Mine.
With 100% ownership of the Aurizona Gold Mine, Luna has quickly ramped up production. In 2012 – its first full year of production – the mine produced 74,269 ounces of gold. The company expects to increase production to 125,000 ounces this year. Another 3.6 million ounces of gold reserves are estimated to be in the ground, waiting to be mined.
As owners and operators of the property, Luna has sole rights to mine every single one of Aurizona’s ounces. But not all of the gold belongs to them.
Seventeen percent of Luna’s current and future production at the Aurizona mine goes to another company – a “gold bank.” Unlike Luna, however, this company pays only $400 an ounce for the gold it receives – less than a third of the current market price for gold.
The Luna property is one of 10 gold mines around the world in which this gold bank has a stake. In every case, the company receives a portion of the production and proceeds of any gold mined at just a fraction of the cost.
It’s called gold streaming – the process by which one company provides up-front funding to some of the most promising precious metal miners in the world in exchange for a percentage of the gold produced during the life of the mine at a fixed price.
The story of the Aurizona mine is one of many such investments by this “British Columbia Gold Bank.”
For investors, the best aspect of this gold bank is that it buys gold for $220 – $400 an ounce. That type of deal is only possible because of its early and sizable investments in the most promising gold mines in the world.
In many ways, this company is similar to Royal Gold (NASDAQ: RGLD) or Silver Wheaton (NYSE: SLW). Both of these companies have performed extraordinarily well over the long-term…
Royal Gold shares have been a top performer, rising from $1.25 in 1990 to around $40 today. Meanwhile, Silver Wheaton shares have soared more than 500% since its 2005 IPO.
But the rapid growth days for both Royal Gold and Silver Wheaton are now in the rear view mirror. And that’s why I’m not recommending either of these stocks today.
Instead, I’m recommending shares of a new “gold bank” that was recently launched by a talented executive who led one of the most successful companies in this niche sector of the mining business.
Yesterday I released my full investment research report in the July issue of my $100k Portfolio investment newsletter. Today, I invite you to claim your copy and discover all the details of this amazing investment.
I’ll be buying shares in my real-money investment account in the coming days. But I want to give you an opportunity to get in on the ground floor, should you find this idea compelling.
I’m certain that you’ll find this research particularly appealing if you’re concerned about the future of gold prices. To get more details on this unique opportunity, just click here now.