Inferred Gold Resources
Allow me to be blunt.
If your favorite little gold stock has a so-called 2/mil+ resource but only about 550,000 is in the indicated category with the rest in inferred, you are going nowhere fast. Inferred resources are not relevant. “NI 43-101 typically prohibits the inclusion of inferred resources in initial economic assessments.”
Only own development companies which have at least a 2/mil oz of M&I resource or P&P reserves. This is the bare minimum resource for takeovers by the larger players.
District Scale Promotions
Avoid promotions which include a headline they have a district scale gold exploration potential.
There is a snowballs chance they will ever have enough money to explore all this property without diluting the share count to unreasonable valuation levels, much less including the cost of building a mine.
Moonshots
Avoid those who claim gold is going to do a moonshot any day now because our government finances are in such a disarray and we are not living within our means. A moment of truth will arrive at some point but may take far longer than you expect or have the patience for.
Following positive gold trends can be profitable exercise but Gold is an insurance policy first, just like for your car, home or health. It's not a get-rich-quick scheme.
Meanwhile, be on the lookout for "on sale" activity.
In Summary
It's not about potential resources, questionable promotions or moonshot mania.
It's all about financially insuring your future by following trends, starting first in the daily. Avoid false flags of hope without foundation.
Invest wisely.
Related: 12 Market Hazards to Avoid (+1 to Adopt)
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