Gold Mining Shares Are The Best Tools To Beat Professional Investors

small investors

It sounds impossible to do better than the average professional investor. With your little laptop you are no match to beat the big money with their endless tools and money. But big surprise, as a small investor you have some resources to beat the big guys and gold mining shares are the best tools to use.

When we talk about professional investors, we mean insurance companies, hedge funds, mutual funds, … they have very powerful computers, analysts, CEO meetings, enormous amounts of data, specialists,… It’s like your college basketball team is playing the NBA All Stars.

But on the contrary to your college team, you as a small investor can beat the big guys. We’ve got some tips for you to get above average results.

# 1. Short term vs Long term

Most professional investors invest for the short run. Their reputation and their bonus depends on every result at the end of each quarter. They don’t have the luxury to buy and hold underappreciated shares.

We’ve been pounding the table for gold mining shares for months. Big investors couldn’t buy them. If they bought a junior miner for example at the end of 2015, clients would have laught or maybe left the room. When they don’t see Apple or Facebook in the list, they walk across the street to a fund manager stupid enough to leave gold mining shares aside.

Undervalued stocks can lead to big gains, as we saw with the most gold mining shares this year. They had a tremendous run, a run for the small investors.

Stierenmarkten goudmijnaandelen

# 2. Small stocks

Hedge funds and other big money players can’t buy little stocks. They manage tens of billion dollars. They can move the price of a stock if they want. So they can only buy big names. But you know something, those big names are also in every index or every other hedge funds. So it’s nearly impossible to make a difference.

Some companies are even obliged only to invest in big names. But small companies can grow to big companies. So you can buy those little gold mining shares the big money can’t reach. And when those companies are big enough to buy for the institutional investors, you already had a magnificent run. And then the institutional investor will drive the stock price even higher.

S&P500 vs goud en zilver

# 3. Perfect match

So gold mining shares are the perfect match for small investors. Most of them are small stocks big investors can’t buy and they are cheap so you can front-run the big money. You can buy them for the long-term and not worry about their performance on the short run.

They can’t double every quarter like they did in Q1, sadly. But they still have a very big move to make so you’ll be rich as an investor.

Goudmijnaandelen vs goud

Graphs: Zerohedge

Disclosure: None.

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