What We Lose

What We Lose

Jonathan Clements  | HumbleDollar  Aug 26, 2023

WHEN WE RETIRE, we win back control over our daily life. Gone is the boss, the expectation that we’ll be at work at a certain hour, the worry about what the next office email will bring. We have a degree of freedom that, in many cases, we last knew when we were students contemplating a long summer vacation.

But even as we gain that freedom, there’s also much that we lose. If we’re to be happy retirees, we need to think hard about how we’ll cope with these losses. For some, what’s lost won’t seem all that bad. But for me—someone for whom work has been so central to my life—the seven losses below loom large.

1. Income. This is the most obvious loss, we all know it’s coming—and yet many folks are left anxious by the disappearance of their paycheck, even if they have ample savings. Moreover, with that paycheck gone, not only do we lose the ability to save, but also our financial life goes into reverse, with savings coming out of our nest egg instead of going in.

Given that, it’s hardly surprising that studies suggest retirees tend to be happier when they have ample predictable income, such as from a pension. Don’t have a pension? To ease the anxiety of retirement, consider delaying Social Security to get a larger monthly check and perhaps also purchasing immediate fixed annuities. I plan to do both.

2. Identity. When we meet folks for the first time, one of the questions is almost always, “So, what do you do?” Instead of “engineer” or “lawyer,” you’ll be saying, “I’m retired.”

How does that answer sit with you? For some, it’ll be just fine. But others will hunger for an answer that lets them reclaim the pride they felt when they described their old profession. Even now, I tell people, “I used to work for The Wall Street Journal,” resting on those old laurels, even though my last Journal byline was more than eight years ago.

3. Purpose. Our new identity will be tied to the meaningful things we choose to do with our retirement years. It might be volunteering, helping family or a “hobby.” I put hobby in quotation marks because the word can suggest something that’s little more than a way to while away the hours.

To continue reading, please go to the original article here:

https://humbledollar.com/2023/08/what-we-lose/    

6 Ways To Become Rich on an Average Salary

6 Ways To Become Rich on an Average Salary

Sean Bryant   Fri, August 25, 2023

Are you ready to take control of your finances and reach financial success? It’s not as complicated as you think, even with an average salary. Becoming rich is achievable when you commit to making smart money moves and have the right financial strategies.

In this article, we’ll discuss some of the best things you can do to grow your wealth even with an average salary.

Start Early

You’ll hear this all the time, but starting early is the best thing you can do for yourself. The sooner you start investing for retirement or open a taxable investment account, the better off you’ll be.

The reason for this is compounding returns. If you start at age 23, you only need to save $14 per day to become a millionaire by age 67. However, if you don’t start until 40, it would require $42 per day. This is assuming your portfolio has an average annual return of 6%.

“According to the Rule of 72, should your investments yield a 10% rate of return, your principal amount is projected to double approximately every 7.2 years,” says June Jia, Owner of Canny Trading and investment banker at GF Securities. “This represents a substantial accumulation of wealth over time.”

Jia discussed the importance of regular investments. “Adopting a disciplined investment approach, such as dollar-cost averaging, can enhance the pace of wealth accumulation by consistently allocating funds to your investment portfolio.”

If you start early, you can invest small amounts of money and still build a sizeable portfolio by retirement.

Prioritize Savings

We live in a world where online influencers discuss the latest fashion trends or must-have gadgets. This can lead some people to spend more money than they might have otherwise. If you want to become rich with only a modest income, you need to prioritize savings. It’s important to have an emergency fund if you want to build wealth. This provides financial security if you lose your job or incur a large expense like a medical bill or car repair.

Once you determine how much you can save each month, make saving automatic. You can set up a direct deposit from your paycheck or schedule automatic transfers from your checking account. Automating savings will remove the urge to use those funds for anything besides building a cash cushion.

Reduce Expenses

To continue reading, please go to the original article here:

https://finance.yahoo.com/news/6-ways-become-rich-average-110045881.html

9 Middle-Class Money Traps That Keep You From Being Wealthy

9 Middle-Class Money Traps That Keep You From Being Wealthy

August 19, 2023 By Angela Mae

According to the Pew Research Center, approximately half of all American households are considered to be part of the middle class. This equates to roughly 165 million people.  Typically, people in the middle class have some kind of college education, some disposable income, and may even be planning for retirement. But that doesn’t mean they’re financially stable.

In fact, middle class households usually have some kind of debt — like a mortgage, auto loan or credit cards — that they need to pay off. Along with this, these individuals are also still subject to many common financial pitfalls, or money traps, that keep them from achieving true wealth.

If you’re in the middle class and want to become financially independent or wealthy, here are some financial decisions or behaviors that might be keeping you from achieving this goal.

Trying To Keep Up With the Joneses

The “middle-class money trap is being on the hamster wheel of life,” said Sebastian Jania, owner of Manitoba Property Buyers. “This is doing things such as buying cars that depreciate over time, taking on student debt for a degree that doesn’t have a solid financial future, or buying a property that one simply shouldn’t be buying because it’s too expensive. This is all commonly referred to ‘keeping up with the Joneses.'”

Societal influence and pressure are very real concerns for many people, ones that often lead to extravagant purchases just to keep up appearances. The problem with this is that it can lead to a cycle of debt and overspending. When this happens, it can be harder to achieve long-term financial goals, invest in the future or build wealth.

Spending Without Saving or Investing

“A common middle class money trap is spending all or more than your income without saving anything that will allow you to make investments that generate wealth, such as a home,” said John Bodrozic, co-founder of HomeZada.

“For the middle class who are homeowners,” Bodrozic added, “the money trap is neglecting maintenance, repairs, and obvious remodeling and improvement opportunities, or mismanaging your home from a financial perspective, that will prevent you from growing your investment and may even lower home values and your equity.”

Settling for the Status Quo

To continue reading, please go to the original article here:

https://www.gobankingrates.com/money/wealth/middle-class-money-traps-that-keep-you-from-being-wealthy/?utm_term=incontent_link_4&utm_campaign=1241873&utm_source=yahoo.com&utm_content=7&utm_medium=rss

Dave Ramsey: 10 Money Myths Broke People Believe

Dave Ramsey: 10 Money Myths Broke People Believe

Heather Taylor  Tue, August 22, 2023

Who do you go to for financial advice? In a YouTube clip from The Ramsey Show, money expert Dave Ramsey warns listeners to be careful where they get advice about money.

According to Ramsey, 78% of Americans live paycheck to paycheck. This means 78% of Americans should not give out financial advice. “When your broke friends have an opinion [about finances], just smile. No, thank you,” Ramsey said. 

These are the top 10 money myths that broke people believe.

1. I Can Save Money Later

A Ramsey Solutions blog post said being able to save money later is one of the biggest money myths believed by broke people.

Building a solid future starts today, not the day you start to earn more money. Even if all you have to set aside is a little bit of money, it’s less you’ll need to worry about saving later.

‘Get Rich Slow’: Dave Ramsey Offers the Key to Lasting Wealth

2. Used Cars Aren’t Safe

Who drives used cars? Millionaires do, according to Ramsey Solutions, and eight out of 10 millionaires make this purchase without going into debt. Research the type of used car you want to buy, pay for it with cash and you won’t need to worry about taking out a loan or making car payments.

3. My Family Needs the Best or Else They Won’t Be Happy

You don’t need to buy your family everything they want the moment they want it. This doesn’t put their happiness at risk. As the post on Ramsey Solutions reads, the better approach for parents who want to raise money-smart kids is to show them the value of the dollar through hard work.

4. I Can’t Win With Money — I’m Too Old

To continue reading, please go to the original article here:

https://finance.yahoo.com/news/dave-ramsey-10-money-myths-100111590.html

If You Think Gold Is Worth Owning, Wait Until You See Uranium

If You Think Gold Is Worth Owning, Wait Until You See Uranium

Notes From the Field By Simon Black   August 21, 2023

Gold has its merits. It has been valuable for thousands of years, and has some industrial applications as well.  But holding a kilo of gold in your hand, all you can really do is admire it, and appreciate that it is a great store of wealth.

Holding a kilo of uranium, you have in your hand a resource that has enough energy to supply a day’s power to 30,000 people.  That's not just impressive; it's transformative in a world being run by absolute buffoons.

Politicians, in their infinite wisdom, continue to plunge the US into deeper debt, racking up trillions in deficits year after year. 

And when global credit rating agencies like Fitch sound the alarm on their fiscal irresponsibility, these politicians don't just turn a deaf ear; they outright reject and ridicule the warnings.

 They gaslight the public and say: No! There is absolutely nothing wrong with borrowing trillions and trillions and racking up debt worth 120% of GDP. Fitch is the crazy one, not us!

Then they dump all this borrowed money into things like the “Inflation Reduction Act." Shockingly, turns out that had nothing to do with inflation. It was a thinly veiled attempt to appease climate fanatics.

Don't misunderstand me. I'm all for clean air and a pristine environment. But I also believe in making informed decisions. The hard truth is that wind and solar energy are not efficient nor cost-effective.

But fanaticism blinds people to facts and data.

We witnessed this during the pandemic, with decision-makers adopting a "whatever it takes" approach, sidelining critical data in favor of emotional reactions. And emotional decisions are usually bad decisions.

The climate fanatics dream of a world powered solely by wind and solar.

But that’s delusional.

Just consider that the largest solar field in the world requires nearly FOUR HUNDRED square kilometers, and produces about 11,400 GWh of electricity per year.

The Kori nuclear plant in South Korea, on the other hand, has a footprint of just a few dozen acres, yet it produces 4x as much electricity.

Converting the world to solar would require hundreds of thousands of square kilometers full of solar panels and wind farms. Just imagine how expensive that land would be. Or how much cobalt, silicon, lithium, etc. would need to be mined and produced.

To transition fully to wind and solar, the world would need billions and billions of pounds of extra materials that are simply not available.

Or you could use one little rock of uranium to provide the daily energy needs of 30,000 people.

Sure, the up-front capital costs are much higher for nuclear. But over the life cycle of a modern plant, the average cost per kWh of electricity is comparable (or less) than solar.

And finally, after being abandoned and ignored for years, policymakers are starting to turn back to nuclear. This isn’t just wishful thinking. It’s happening… if not in the US, then around the world.

There are around 415 reactors currently supplying nuclear energy to the world. There are 59 new ones under construction, and 111 in early stage development. Another 300+ have been proposed. The vast majority are in Russia, India, and China.

(The US has just one under construction. Germany removed all theirs and now has 0. Sweden has 0. France has 1. The “developed” countries are way, way behind.)

Yet even with just 415 active nuclear plants, uranium is already in short supply.

In 2021, for example, nuclear plants used 73,698 metric tons of uranium to produce electricity. Yet total uranium mine output that year was just 56,377 metric tons.

In other words, mines aren’t producing enough uranium... and they haven’t been for most of the last decade. Nuclear plants have had to draw down on their previous stockpiles.

(My colleague Adam Rozencwajg of Goehring & Rozencwajg recently published some great research on the topic, showing uranium stockpiles to be at their lowest levels in nearly 20 years.)

Think about it— if uranium is already in short supply today, just imagine how undersupplied the market will be in the future when these new reactors come online.

Most likely this would result in a major price surge in uranium.

We’ve talked recently about how gold could double, triple, or even more in price over the coming years.

Uranium essentially has similar upside as gold, but with the additional benefit of being a transformative fuel that can provide a cheap and abundant source of energy.

To your freedom,  Simon Black, Founder  Sovereign Man

https://www.sovereignman.com/international-diversification-strategies/if-you-think-gold-is-worth-owning-wait-until-you-see-uranium-148076/

7 Little Changes That’ll Make Your Money Last for Generations

I’m an Advisor to Wealthy Families: 7 Little Changes That’ll Make Your Money Last for Generations

Ken Eyler CEO, Aquilance  Sun, August 20, 2023

You may have heard of the third-generation curse, which causes 90% of wealthy families to lose their money by the third generation. But some individuals manage to deplete their wealth even sooner, especially if they came into a lot of money quickly.

For instance, athletes, entertainers, executives and entrepreneurs who achieve runaway success after years of financial hardship may suddenly find themselves with seven-figure bank accounts and no idea how to carefully spend and manage their money.

The same thing can happen to people who inherit a lot of money. In fact, money mismanagement is one of the primary factors in the third-generation curse if sound financial values and solid money management strategies weren’t passed on through the generations.

Many of these families did not start off wealthy, and had already developed sub-optimal money habits by the time they became wealthy. Often, it’s hard to change those habits that have been formed over a lifetime. But when you have money, you, unfortunately, become a target. Your behavior needs to change if you want to preserve your wealth.

GoBankingRates spoke to Ken Eyler, CEO of Aquilance, a financial administration company focused on bill pay, bookkeeping, and complex entity and investment reporting for wealthy families. He shared with us seven tips to preserve generational wealth, whether you are a new heir, a social media influencer who hit it big, or an entrepreneur who’s struggled for years before finding that business idea that set you up for life.

Tighten Your Security Profile

As an advisor to high-net-worth and ultra-high-net-worth families, I often encounter those who make easily avoidable mistakes with their fortunes. Many of these families did not start off wealthy, and had already developed sub-optimal money habits by the time they became wealthy.

I see security as one of the biggest vulnerabilities for families. One of the common pitfalls are folks who were accustomed to posting about their travels on social media, especially if they first made it big in the public eye.

But when they are traveling on private jets and leaving their multimillion-dollar homes, they open themselves up to threats when they reveal their whereabouts. My recommendation is to post after the fact instead of in the moment. Also, take seriously the importance of anonymity when checking into hotels or visiting tourist attractions.

To continue reading, please go to the original article here:

https://finance.yahoo.com/news/m-advisor-wealthy-families-7-203337535.html

3 Simple Steps You Must Take to Shield Yourself from Identity Theft

3 Simple Steps You Must Take to Shield Yourself from Identity Theft

How to fortify your identity against the growing threat of fraud.

by Abigael Good  August 16, 2023

Identity thieves can cause a lot of stress — not to mention damage — if they get access to your personal information. In fact, in a recent GBR survey, 58% of Americans said having their identity stolen would be catastrophic.

Even if you don’t have that same level of concern about identity theft, there are still three key steps you should take to protect yourself. “Rather safe than sorry” is the name of the game.

1. Reset Your Passwords

If you’re concerned about identity theft, the first step is to go through your passwords for all important accounts, from your email to your bank, and make sure they are all different from each other.

If you reuse passwords, it is easy for a hacker to gain access to your login information for just one site and use that knowledge to wreak havoc on your identity. You may be extremely vulnerable if you have been mindlessly repeating the same password, or similar passwords, across accounts.

If you need help keeping track of your new, unique passwords, you can use a password manager. Password managers are secure sites where you can store all your logins, so you only need to remember the login to your manager to access all the rest. Of course, make sure your password manager login is extremely strong and not a duplicate of any other account’s login.

2. Sign Up For Alerts

To continue reading, please go to the original article here:

https://www.gobankingrates.com/how-to-shield-from-identity-theft-1863382/?utm_source=yahoo.com&utm_term=related_link_2&utm_campaign=1241554&utm_content=4&utm_medium=rss

7 Reasons You Should Update Your Bank Account Password ASAP

7 Reasons You Should Update Your Bank Account Password ASAP

Jacob Wade  Fri, August 18, 2023

According to a recent survey by GOBankingRates, 17% of Americans have never changed their bank account passwords.  This means the money parked in those accounts could be vulnerable to online thieves. With massive data breaches becoming a common trend, phishing scams and fraud schemes running rampant online, and password cracking software becoming more sophisticated, it’s important to stay up to date on securing your financial accounts.

If you haven’t changed your bank account password, here are seven reasons to do it today.

You Use the Same Password for Other Accounts

Most people have been guilty of this. With so many accounts moving online, it’s easy to use the same password over and over again. But this is a mistake that hackers want you to make, especially with your financial accounts.

Using the same password for multiple accounts puts you at more risk. If there is a data breach for any of your online accounts, hackers now have access to your password for that account. The first thing they will do is attempt to use this same username/password combo for multiple types of accounts, including your bank account.

If you have no other protections in place, they can quickly drain your accounts, leaving you with no money and no recourse. Always use unique passwords for each online account.

Be Real — It’s Been a While

While you don’t necessarily need to change your password every month, if you haven’t changed your bank account password in a few years, it might be time to mix it up. With data breaches across major companies, it is likely that an old password of yours might have been compromised. This can be quickly remedied with a password change for each of your financial accounts.

A good rule of thumb is to update your password every two years. Research from the Federal Trade Commission suggests that mandatory password changes aren’t as effective as just setting a strong password in the first place. But changing your password every few years can help keep your passwords protected from data breaches.

Your Password Is Saved In Your Browser — and Is Easier To Access

To continue reading, please go to the original article here:

https://finance.yahoo.com/news/7-reasons-bank-account-password-190018206.html

5 Best Money Moves To Make Before Retiring

5 Best Money Moves To Make Before Retiring

James Holbach  Mon, August 14, 2023

How To Be Wealthy in Retirement: Experts Share the 5 Best Money Moves To Make Before Retiring

Retirement. Imagine it. Dropping out of the rat race forever, enjoying the time you have left — being with your family, pursuing the hobby you could never make time for, finally taking that dream vacation.

Unless you were born rich — and if you were, you probably wouldn’t be reading this — you know it’s not going to happen without a lot of saving and planning. You’ve seen the generic advice everywhere. Max out your 401(k), cut your expenses, go back to school so you can make more — but there are a million paths to financial security, and some of them might surprise you.

Here are five real-world examples of people that made smart moves that allowed them to enjoy a worry-free retirement.

Downsizing

Dennis Shirshikov, head of growth at Awning, shared the story of Tom and Lisa, who were able to secure a very comfortable retirement by significantly downsizing their lifestyle.

“As their retirement neared, they opted to downsize their lifestyle significantly. They sold their five-bedroom house in the city and bought a smaller, but comfortable, two-bedroom home in a quieter suburb. This not only reduced their living costs but also provided them with a considerable amount of cash from the sale, which they put into diversified investments.

“Now, they live comfortably off the income generated from their investments, and they’ve even had the chance to indulge in regular travel, something they’ve always dreamed of.”

Investing In Rental Properties

Shirshikov also related the story of retired school teacher Sarah, who achieved her retirement dream by investing in rental real estate.

“Instead of choosing to put her money in typical retirement accounts like a 401(k), she opted for a more unconventional approach.  By the time she retired, she had a portfolio of five rental properties, each providing a stable monthly income. To make it even more hassle-free, she engaged a property management company to deal with the daily operations. Now, in her retirement, she enjoys a steady stream of income that more than supports her lifestyle.”

Never Stop Working — Sort Of

To continue reading, please go to the original article here:

https://finance.yahoo.com/news/wealthy-retirement-experts-share-5-130030640.html

Top 10 Rules To Put You On The Fast Track To Making Your First Million

Top 10 Rules To Put You On The Fast Track To Making Your First Million

K.E. Gold  Thu, August 17, 2023

Do Not Wait On People To Find You': Patrick Bet-David Offers His Top 10 Rules To Put You On The Fast Track To Making Your First Million

Patrick Bet-David’s biography reads like a classic American success story.

According to the 44-year-old businessman, when he was 10 years of age he and his family fled turmoil in Iran and settled in the U.S. He joined the military after high school and then went to work for a couple of financial services companies before launching PHP Agency, an insurance sales, marketing and distribution company. He’s also an author and content creator through his media brand Valuetainment, which boasts millions of followers on YouTube.

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Bet-David is well-positioned to offer advice on how to make millions of dollars, an ability that may not be as rare as people think. Today, there are about 22 million millionaires in the U.S., or about 8.8% of the adult population, according to research from online recruitment company Zippia. Globally, there are about 62.5 million millionaires.

In a recent video, Bet-David shared 10 rules on how to get to that first $1 million quickly.

1. Say 'Yes'

The key to success at the beginning is networking. Bet-David says he knew he was one client away, one contact away, one relationship away from making his first million. By saying yes to meeting with a lot of people, he increased his odds of finding the right deal.

2. 'Follow One Religion'

Do not get caught up in every lesson or tip from every author or influencer on how to bring in customers, Bet-David advises. Choose a strategy, or “a religion,” as he calls it, and stick to it.

“Drive that philosophy until you create momentum,” he said.

To continue reading, please go to the original article here:

https://finance.yahoo.com/news/not-wait-people-patrick-bet-100000477.html

Why We Think Gold Companies Can Go 10X In The Coming Boom...

 Why We Think Gold Companies Can Go 10X In The Coming Boom...

Notes From the Field By Simon Black

With a current annual budget deficit of $1.6 TRILLION – set to hit $2 trillion by the time the fiscal year ends in September – the US Federal Government is putting drunken sailors everywhere to shame.

At the end of the 2019 fiscal year (just before Covid-1984 hit), the US national debt was $22.7 trillion. Today, it’s nearly 50% greater: $32.7 trillion. And it keeps growing each year.

Just yesterday, our founder, Simon Black, explained that most of the US national debt was accumulated over the past ~15 years, when interest rates were super low. The Treasury Department got accustomed to being able to borrow for less than 1%.

In fact, as late as August 2021, the average interest rate that the US government was paying on its national debt was just 1.45%.

But now interest rates are MUCH higher. The government is now paying an average interest rate of 2.8%, almost twice as high as just two years ago.

The national debt is so high, though, that even 2.8% is too expensive for the US government.

This fiscal year (which ends on September 30, 2023), the Treasury expects to spend a whopping $864 billion just paying interest on the national debt. Again, that’s with an average rate of just 2.8%.

The real problem for the federal government is that roughly 75% of the debt will mature over the next five years. And as their current debt comes due, they’ll pay it back by issuing NEW debt at a HIGHER interest rate.

This means that the government’s average interest rate that it pays on the national debt could rise to 5% over the next five years.

Including all the new debt they project to accumulate over that period of time, this means that the government would have to spend $2 TRILLION of taxpayer money, each year, just to pay interest.

And frankly, paying an average 5% interest on the national debt is still pretty low given US financial history.

The average rate was 5% as recently as 2007. In 2001 it was nearly 7%. And throughout much of the 1980s, rates were in the double digits. So forecasting a 5% average interest rate on the national debt within five years is totally reasonable.

Remember too that, in addition to paying interest, “mandatory” spending on entitlement programs like Social Security and Medicare will hit $3 trillion in a few years.

This means that Social Security, Medicare, and Interest on National Debt could soon exceed 100% of the US government’s tax revenue.

This looming fiscal crisis will fast become a mainstream issue. And politicians will predictably react by raising your taxes sky high to pay for their incompetence.

Simon anticipates the Federal Reserve to try to bail out the government… by slashing interest rates back to 0% and printing trillions of dollars to buy US Treasury bonds.

The consequence, of course, will likely be more inflation.

Why buying gold – and gaining portfolio exposure to it – makes a lot of sense in 2023

As longtime readers of Sovereign Man will know, all of the above is exceptionally bullish for gold.

Now, gold can be a lot of things. It can be a great asset protection tool. It can be a great speculation. It can be a great way to pass on wealth to your kids.

But gold also has a 5,000 year track record as a reliable hedge against inflation and a range of systemic risks.

Most people suffer to some degree from normalcy bias; this is the belief that tomorrow will be very similar to today. Yet the past few years have shown that the world can become radically different… overnight.

And it is precisely during these kinds of Black Swan events and sudden system shocks that physical gold can be an invaluable asset. This is one of the reasons why gold predictably went through the roof during the pandemic.

Yet now that the dust has settled on the pandemic, few people are thinking about buying gold.

In fact, gold prices have remained pretty flat since 2022. An even better example is that many gold-related businesses (including mining companies) are currently trading at ludicrously cheap levels.

But when you consider the obvious risk of a major financial crisis in the US over the next five years, you don’t need to be a gold bug to appreciate gold’s significant potential upside…

It should also be noted that central banks were extremely active buyers of the metal in 2022, buying at a speed not seen since 1967. (Central banks’ purchasing behaviors are a key driver of gold price increases.)

Karl Bagga, the editor of our investment newsletter The 4th Pillar, (which is focused on real assets) believes that we are in the early stages of a significant bull market for gold.

Simon agrees. In fact, he’s argued a few times why gold could trade at $5,000+ in the coming years, up from around $1,900 per ounce today.

How YOU Can Cash In On The Coming “Gold Rush”...

Many investors who consider investing in gold automatically buy into an ETF (exchange-traded fund). Simon has written before that these gold ETFs carry substantial hidden risk which most investors won’t notice… unless they do what Simon does, and actually read all the legal disclosures.

That’s why, at Sovereign Man, we far prefer owning physical gold over ETFs. But more on that another time.

Rising gold prices also present tremendous upside for mining companies and related businesses, including:

Mining royalty companies

Mining financial services providers

Gold millers and refiners

Mining services companies

As well as technology and service providers for mining and complementary sectors…

These are the exact kinds of companies that regularly feature in the page of The 4th Pillar (4P), our real asset focused investment letter.

For example:

One of the recently featured companies from Karl’s research in The 4th Pillar is a gold-related business that specializes in drilling, site work, and processing.

It’s a “picks and shovels” business rather than a mine itself. So the company makes money from a gold mining boom, but without the same downside risk.

The business has been performing exceptionally well, has very little debt, and is generating record revenue with very strong profitability. And yet, with a price-to-earnings ratio (PE) of just 4.5, the stock is incredibly cheap right now.

Another example from Karl’s research is a gold ore processor; this is a company that purchases raw gold (i.e. rock ore) from small miners, processes it in bulk, then sells the processed gold to a large refiner.

Being an ore processor will position them for enormous gains in the coming gold boom; their business – already very profitable – will likely grow even more dramatically over the next few years, resulting in a big win for investors.

In the meantime, the company is already paying its investors a healthy dividend. Plus, they have zero debt and tons of cash on the balance sheet. Yet it also currently trades at a laughable 5.5x valuation.

The Bottom Line

Gold miners and gold production companies offer excellent opportunities to make serious profits from the coming boom in gold prices. And that opportunity exists right now because, for whatever reason, investors are largely ignoring the entire sector.

That’s probably not going to last.

Good investing,

Simon Black & Sovereign Man Editorial Team

To find out more, click here.