Stansberry Research has released a presentation about their “#1 Gold Play for 2023” featuring host Amy Gamper, who says there’s a “tiny $5 gold royalty firm” you could use to make “substantial gains” as gold soars higher.
According to the pitch, it’s “by far the No. 1 way to get rich in gold today.”
At first, I thought they might’ve been teasing a gold mining stock. But as the presentation continued, it was revealed that it “has nothing to do with bullion, ETFs, or mining stocks.”
So, I did some research to find out what Stansberry’s number one gold investment is. And in this post, I’ll show you everything I learned. I’ll also show you what the Commodity Supercycles service is about, which is the newsletter pitched in the presentation.
Update (February 2023): This article was first published in 2022 when Bill Shaw teased this stock. However, the presentation has since been re-launched and is now presented by Amy Gamper. The details are all virtually identical, but I have updated this post to reflect the changes.
Update (March 2023): I just found yet another version of this teaser (Web Archive link) from Daniela Cambone, and the transcript seems virtually identical.
Stansberry Research’s “#1 Gold Play for 2023” Revealed
The Stansberry Research presentation began with Amy Gamper (and now Daniela Cambone) talking about how gold has outperformed the market over the past six months and how they believe gold could “skyrocket even higher in the weeks and months to come.”
Specifically, she says that Stansberry expects gold to hit $3,000 at the end of 2023 and possibly reach $5,000 or higher “in this new bull market.”
“Not only do we expect gold to hit $2,000 by the end of 2023…
“We think it’ll likely keep going, soaring far beyond $3,000… possibly reaching $5,000 or higher in this new bull market.”Source: https://secure.commoditysupercycles.com/?cid=MKT701037&eid=MKT705139&channel=1493821&sid202=1493821&assetId=AST275769&page=2
Why does Stansberry think gold will keep going up? Based on the presentation, this prediction relates to how investors are (supposedly) “loading up” on gold…
“As you can see many of the most powerful, well-connected and smartest investors in the world are loading up on gold in unprecedented ways.”
According to Gamper, “many of the most powerful, well-connected, and smartest investors in the world are loading up on gold in unprecedented ways.”
She also claims that central banks are stacking gold “by the pallet.”
“The world’s biggest investors – richer and more powerful than all the world’s billionaires combined – are stacking gold in their vaults by the pallet.
“Can you guess who I’m talking about?
“It’s the world’s Central Banks.”
Specifically, she states that the world’s central banks bought 463 tons of gold in the first three quarters of 2022.
Is that true? Well, I don’t know about the dates she cited, but according to the World Gold Council, central banks added 463 tons to global gold reserves in 2021, which was 82% higher than the previous year.
Of course, that doesn’t mean the price of gold will go up, but this seems to be what Stansberry Research’s overall gold price prediction is based on – increasing demand.
And instead of buying gold, the pitch claims that there’s a “much better way to profit from the emerging gold boom.”
According to the teaser, this “virtually unknown” gold strategy returned 38% per year for 18 years during one period and helped preserve wealth during a recession.
“During one period, for example, this virtually unknown gold strategy returned 38% per year!
“And not just for a year or two…
“This incredible investment returned an average of 38% a year – for 18 straight years…”
“Even during the Great Recession, when the stock market lost 37% in 2008, this approach preserved investors’ wealth – and even gained more than 50% – despite the fact that gold bullion barely moved.
In short, the investment I’m about to show you may be one of the world’s most profitable and low-risk investments – yet it’s still virtually unknown.”
What is this “virtually unknown gold strategy” about?
The presentation reveals that the “virtually unknown gold strategy” was pioneered by a Canadian man named Pierre Lassonde, who discovered gold mining royalties.
“The virtually unknown gold investment I want to tell you about was pioneered by a Canadian named Pierre Lassonde.”
“In short, the secret Lassonde discovered was ‘Mining Royalties’ – that is, simply a right to receive a percentage of production from a lucrative gold mine.”
What is a gold mining royalty?
A gold mining royalty company essentially bankrolls gold miners in return for a cut of the mine’s future gold production.
The company doesn’t mine anything itself; it simply buys the right to receive a percentage of the mining company’s future revenue or precious metal production.
On the one hand, royalty companies have lower overhead costs, meaning higher potential profit margins. And they can buy the rights to many individual mines, which can potentially reduce the company’s overall risk given it’s not relying on any one mining operation.
So, this can potentially be a great strategy for investors.
However, as this article on CFI points out, there are risks involved.
The main risk the article highlights relates to how royalty companies need lots of cash to buy royalty streams. This capital is often raised through new stock issuance (which dilutes existing shareholders) or taking on debt (which can reduce the company’s profitability).
So there are pros and cons to consider when it comes to gold royalties, as with any type of investment. And if you want to know more, I would suggest checking out the above article. It’s an interesting read and shows you both sides of the coin (no pun intended).
Nevertheless, that’s what the presentation centers around – a gold royalty stock.
And as a side note, Stansberry pitched this same business model in a different presentation I wrote about, where Bill Shaw talked about a $4 “battery royalties” nickel stock pick. So if you want to know what other royalty stocks Stansberry has teased, give that a read.
In any case, let’s look at what company Stansberry’s talking about this time…
Stansberry’s $5 gold royalty stock (“#1 Gold Stock”) for 2023
The main clues the presentation revealed about Stansberry’s top gold stock is that it’s a Canadian gold royalty company with around 25 employees that went public in 2007.
The pitch also shared some clues about the person who runs the company.
But other than that, the clues were pretty scarce.
Here’s a summary of the main clues provided in the presentation:
“One of our favorite royalty streams is based out of a humble office park in Canada.
“They only have about 25 employees… far less than a typical McDonald’s.
“Yet they’re able to rake in $84 million a year. And ever since 2007, participation in this stream has been open to the public.”
“It’s led by a man who grew the world’s largest silver royalty outfit into a multibillion-dollar company.
“This experienced team helped form a brand-new royalty company – which uses the same investor-friendly business model as Franco-Nevada and Royal Gold. They now own royalties on mines in Brazil, Turkey, Mongolia, Argentina, Canada, and the United States, just to name a few.”
After doing some research, the closest match seemed to be a company called Metalla Royalty & Streaming, but that doesn’t seem like a match after taking a closer look.
So, I kept on digging and eventually came across Sandstorm Gold (SAND), which I think is a match based on the clues he shares in the presentation.
Here’s an overview of why I think it’s Sandstorm Gold:
- Sandstorm Gold is a Canadian gold royalties company that was first listed on the TSX Venture Exchange in 2007. Today, it’s listed on the NYSE under ticker SAND and it’s currently trading for just under $8 per share. However, it was trading at around $6 per share in February, which is the date the presentation was put together.
- My research suggests that the company has around 25 employees.
- The company’s annual revenue has been close to the figure Amy Gamper mentioned, but not exact (the company earned just over $89 million in 2019). The only mention of “$84 million a year” I could find is in this Yahoo Finance article, which suggests that this was the company’s revenue for the 2019 fiscal year. I’m not sure why they would use an old revenue figure, but it might have something to do with the next point.
- It appears as though Stansberry Research first teased this stock in 2019 and then again in 2020. So this presentation is the latest version of an older presentation.
- According to the Sandstorm Gold website, the CEO ran Silver Wheaton Corp before co-founding Sandstorm Gold. And while he was there, he developed the company’s silver streaming business and raised more than $1 billion.
- Finally, Sandstorm Gold has operations in the countries mentioned in the teaser.
So, I believe Sandstorm Gold (SAND) is Stansberry Research’s “#1 Gold Stock” of 2023.
Of course, that’s just a guess. The only way to know for sure is to read the report (“The #1 Gold Stock to Buy in 2023”). And the only way to access that would be to sign up for a Commodity Supercycles subscription.
So let’s look at what this service is all about.
What Is Commodity Supercycles?
Commodity Supercycles is an investment research service published by Stansberry Research focused on, you guessed it, commodit-related investments. And it costs $49 for the first 12 months if you join through the presentation.
For that, you get access to Stansberry’s latest commodity-related stock picks. For example, things like energy companies, mining stocks, and royalty companies. All of which is contained in the monthly newsletters and research reports.
As with most services, there’s also a model portfolio so you can see what positions they’ve already recommended that are still active and updates on the recommendations.
You also get access to the report I mentioned earlier (“The #1 Gold Stock to Buy in 2023”), which shows you what gold royalty company they are teasing and why.
Is it legit?
Yep, Commodity Supercycles is a legitimate subscription. It’s published by Stansberry Research, which is a well-known financial publishing companies in the space, and it comes with a 30-day refund policy.
That said, there are two things I think are worth mentioning…
First, there’s no guarantee the service will help you make money. This is true for any service, though, so it doesn’t make it any less credible. But it can be easy to get excited and forget that it’s possible to lose money following someone’s stock picks.
Second, according to the order page for the service on the Stansberry Research website, Commodity Supercycles automatically renews at $199 after 12 months. As with the first point, this doesn’t make it a scam, but I did think it was worth mentioning because some people might assume it costs $49 per year, every year. And that’s not the case.
Update (February, 2023): I ended up joining this service after posting this article back in 2022. So if you want a full breakdown, see my complete Commodity Supercycles review. In it, I discuss what the service is about, how it works, how the recommendations have performed, and more. So be sure to check that out if you want to know more.
Recommended: Go here to see my #1 rated stock advisory of 2023
The “virtually unknown” investment strategy Stansberry Research teases in the presentation is investing in gold royalty stocks. And I believe that their “#1 Gold Stock for 2023” is a company called Sandstorm Gold.
Of course, the only way to find out for sure would be to join their paid service, Commodity Supercycles. But based on my research of the clues shared in the presentation, Sandstorm Gold is the company being teased here.
Either way, I hope you found this post helpful.
And if you’d like to share your thoughts on any of this, feel free to comment below.
Thanks for reading!