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Greg McCoach Recommends Gold and Silver

on 12/30/2011

We recently caught up with Greg McCoach at the San Francisco Hard Assets Investment Conference. The conference provides an opportunity for investors to learn from analysts, economists, and newsletter publishers about opportunities to diversify, protect and grow portfolios with natural resources investments. “I always like to come to the shows to see the people and my subscribers,” says Mr. McCoach.


Greg McCoach is a successful entrepreneur who has been involved with the precious metals industry as a bullion dealer, investor, and newsletter writer for almost 10 years. He is president of AmeriGold, a gold bullion dealer.


In his newsletter, The Mining Speculator, Mr. McCoach recommends that investors take a position in precious metals and base metals mining shares. Called "the world's most profitable investment service," The Mining Speculator has a team of analysts to research investment opportunities in the commodities markets as protection against current financial uncertainties in the U.S. and world markets.


Tough Times Create Opportunity

Mr. McCoach admits that things are going to get worse before they get better; however, junior mining companies provide opportunities for investors to find value and to come out ahead. “Our market is in a tough space right now and everyone is wondering what’s next. This is good for people who like to buy value,” he mentions.


“You get these opportunities to buy these junior mining stocks on the cheap,” continues Mr. McCoach. Though he does warn, “I do think that we could go lower in the next few months before things start to catch fire again.”


Mr. McCoach sees gold and silver as the solution to the latest problems in the market with the juniors. He sees a dramatic rise in prices coming. “This will be the next run to the newest highs. Gold will be well over $2000. I expect silver to be well over $50 going towards $60 and $70 an ounce,” he exclaims.


His sees this price increase happening because of “the sovereign debt problems in Europe and the implosion of these derivatives and credit default swaps with MF Global.” Mr. McCoach adds, “In the coming months, there’s going to be a constant stream of news regarding these kinds of defaults and problems. It’s going to involve all the big banks in Europe, London and United States and this is going to be 2008 all over again but on a much bigger scale.”


For these reasons, Mr. McCoach sees a rise in the precious metal prices. He concludes this idea saying, “Value investors are going to look at these juniors with these high metal prices and see this is a no brainer. We’re going to get our time again.” Though he reminds, “We may be in a tough patch for a little while before that happens.”


Buy the Juniors

Investors can find value by finding junior companies that are trading below cash value. “In other words, total number of shares divided by cash in the bank; the stock price is either equal or lower to that number. That’s a great investment,” exclaims Mr. McCoach. “So, the wise investor looks for these companies.”


Mr. McCoach provides Orko Silver as an example: “It’s a 5 dollar bill stock and it’s trading for less than $2 now. Very little risk, no exploration risk to this story if you’re just playing it as a value play because of the market. There’s plenty others like that.”


Mergers and Acquisitions

Mr. McCoach also forecasts a lot of merger and acquisition activity. “This kind of environment brings that because many of the smaller junior exploration companies can’t afford to keep raising money. They get in trouble and have to merge or be acquired by someone else. That activity will happen.”


A junior exploration company that has a real resource, and is ready to go into production, is a target to a major company. He points out the major companies are already mining, they’re making money, they have cash, but they need to find big enough resources to continue. “The majors are in desperate need to replenish resources,” explains Mr. McCoach. “They have to have these ounces.”


Some Recommendations

“Ethos Capital is one that I’m watching very carefully,” volunteers Mr. McCoach. “I’ve been up to the Yukon 3 times in the last 2 summers and I like what’s going on up there.” He admits the Yukon provides some challenges with a limited work schedule due to the extreme winters and Ethos is slow developing. However, Mr. McCoach compares Ethos to Kaminak, which is the biggest player up in the Yukon right now. Kaminak has done very well and Mr. McCoach believes Ethos is going to follow their success. He adds in their favour, “Ethos Capital has found the high grade gold samples and has the high grade trenching samples, so they’re drill ready for next summer’s drill season. I think that’s going to be a very exciting place.”


Mr. McCoach mentions he is also looking at projects in South America and Nevada. He confesses a love for Mexico, but mentions he is a bit wary of late because of the problems down there. “The drug cartels are trying to get control. Mexico still offers great opportunity; I’m just a little worried about travelling to Mexico right now to visit some sites,” he explains.


Physical Gold and Silver

Mr. McCoach also recommends owning the physical metals. “If anything with this MF Global, this is proof that you don’t want to have your money in ETFs, exchange traded funds for silver and gold,” he warns. “You have to own the physical metal and you need to take delivery of it. It’s not as convenient, because you need to store this metal safely from fire and theft, but it’s what you have to do right now if you want to keep your money.”


Mr. McCoach doesn’t think gold accounts, certificate accounts, or ETFs are going to provide the full benefit when gold and silver prices escalate. “This is just a warning sign right now. If you’re in one of those products get out. Get the real physical metal,” he advises.


An Analyst and a Family Man

Mr. McCoach concludes his interview saying he’s looking forward to a break for the next few weeks before the travelling starts again in January. “I usually like to take most of December as family time. This is just one of those times of year when we get a break from the conference circuit and the shows.”


You can find out more about Mr. McCoach and his recommendations at his website,, or at his bullion dealership,


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