He makes money, and he’s been making money for a very long time.
By July 10, 2020– Published on
Why should young people listen to Rick Rule? He is, after all, an old, fat, rich, white guy (his words - not mine).
I am exactly 40 years his junior, and I must say at first glance, you could assume Rick would be more at home on my uncle’s golf course than on my YouTube Favourites list.
However, the reason young people should listen to Rick is that the next big money opportunity will be in Gold. And Gold requires us to read the prologue before understanding the present. Few know that prologue better than Rick.
Recent bull markets like Cannabis and Cryptos made a lot of young investors rich. But with no proven gurus, nor historical cycles to reference, many of those investors were left holding the bag when the markets crashed.
However, Gold is different. There’s history, charts, gurus, books, philosophies, museum exhibits, enough research to give you cataracts. Even YouTube videos (shameless plug). I think we all agree with some discipline and time we could earn a PhD equivalency from YouTube.
But, there’s a lot of garbage out there. You need to know where to look, and I urge you to look at Rick. Let me explain why:
He makes money, and he’s been making money for a very long time - i.e. this industry is full of One-Hit-Wonders, only a handful of people have navigated this business for 30 years and come out on top.
He’s got skin in the game - He speaks with his wallet. Don’t be fooled by “experts” whose real income is newsletter subscriptions. Rick lives and dies by his portfolio.
He takes emotion out of the game - he bets big when the rest of us are fearful (no judgment here, the thought of losing money makes me emotional too).
He cuts his losses - unlike you and your favorite quarantine sweatpants with the stains, he knows when to let go.
He finds the 7-Footers - Every industry has players that stand above everyone else and deliver outsized returns. In a chaotic industry full of promotion, finding the best of the best is not easy to do. It takes years of practice, and expensive mistakes. Lean on his credentials.
All of this to say, in this business, you bet the Jockey. I pick Rick, and in doing so, I listen to his picks.
Which takes me to EMX. CEO David Cole is as respectable as he is approachable - he is, as they call it, “a super nice guy”. Prior to EMX, David spent 18 years at Newmont Mining (for those of you who don’t know - Newmont is the world's largest gold mining company, no big deal).
He founded EMX Royalty Corp in 1996.
What is a Royalty you ask? Simply put, a royalty is an exchange of money now, for revenue later. Imagine this - your friend is a genius and has a $1M/Year business idea. He needs $100K to get the business up and running, but unfortunately, your friend is broke. So you, being the savvy investor that you are, agree to give him the $100K he needs in exchange for 5% of his revenue for the next 10 years.
Royalty companies go shopping in bad markets when mining companies are starved for cash. Then, they sit back and collect when the markets turn.
EMX does this all over the world for a nice diverse portfolio.
Why Rick likes Royalty companies: “Extraordinarily low operating margins - meaning more money comes home to Mama and Papa”. We like that!
Royalty companies are lower risk. It takes buckets of money to build a mine. Even closed mines hemorrhage cash. Making discoveries is just as costly. EMX partners with companies to share the funding there too. In a way, royalty companies deflect a lot of liability, keeping their shareholders in a much cozier, safer place.
What we can expect from EMX this summer: continued Deal Flow. More Royalty generation, more assets being acquired, more cash flow = more value for you and me!