Last week I flew to one of my favorite places in the country — Austin, Texas — to sit down with Outsider Club’s newest investing expert, Gerardo Del Real.
Gerardo is a true genius in resource investing. He’s been advising institutional investors, high-net worth individuals and even billionaires. And he’s done quite well…
Despite the bloodbath in resources over the last few years, Gerardo’s disciplined approach and exhaustive boots-on-the-ground research saved his clients millions of dollars while others lost their shirts. That earned him a crucial network of very influential and supportive contacts in the resource space, which is the crux of any great investor in gold, silver, and other commodities.
I knew I had to meet up with him to pick his brain first-hand. So we sat down over a couple of Austin’s finest craft beers and broke down his strategy, his history, and his outlook on important developments in gold, the dollar, and investing in general.
Here’s the rundown of our chat…
Jimmy: So, Gerardo, how did you first break into the resource space?
Gerardo: Well, after some very successful deals in the real estate sector, I saw the real estate boom was nearing its end. I had capital to allocate and was excited by the risk-reward proposition in the resource sector.
Keep in mind this is nearly a decade ago. As my interest and investments in the sector grew, I was fortunate enough to meet people in the business who were very generous with their time and experience. My relationships with those people led me to do consulting work in the space and success there ultimately led to the launching of Resource Stock Digest Premium with you guys.
I can’t wait to share my knowledge with everyday mom-and-pop investors, who are the ones who really need this information.
Jimmy: Can you tell me a bit about your past? You’ve lived in some very interesting places…
Gerardo: My parents are from Zacatecas, Mexico. Coincidentally home to some of the world’s richest silver mines — maybe that’s why the resource sector resonates with me? Being a first-generation son of immigrants, my parents often moved to where the jobs were — and as I got older that entrepreneurial spirit allowed me to have a much more open-minded approach to finding success that didn’t require that I stay in one place.
I’ve lived in Chicago, Miami, and Alaska…just to name a few. But luckily I landed in Austin a little over three years ago and absolutely love it here.
Jimmy: I don’t blame you, the energy here is incredible. So, back to business…
Resources have been an absolutely brutal market over the past five years or so. What were you doing during that time to preserve your investments?
Gerardo: The brutality of the past four-plus years allowed me to develop a very disciplined approach. An approach that is well-served to anybody speculating in this risky but very rewarding sector.
Coincidentally, some of my most successful investing years in the resources space haver interest. Meaning, they know how to add value while maintaining solid share structures. been during the latest downturn. When you experience a bear market like we’ve experienced over the past four-plus years, it’s important to remember that less is more. Meaning sometimes it’s only three or four very well researched speculations that will make you the most money.
That approach served me well. With the new gold bull market that is developing, that same approach will produce even bigger gains, and that gets me very excited for the launch of Resource Stock Digest Premium.
Jimmy: What types of companies were you looking to buy at a discount? What criteria did they have to meet?
Gerardo: I look for companies that first of all have experienced management, with a track record for discovery and development. Not only a track record of knowing how to develop an asset but also how to do so in a way that is aligned with shareholde
I also look for companies with multiple catalysts on the horizon. Take the current Resource Stock Digest portfolio; while gold is off some $50 over the last few weeks, two of our first five picks are up over 50%.
Not too shabby if you ask me…
Jimmy: Not at all.
So — for years now — we’ve heard plenty of analysts predicting the dollar to crash at any minute, sending gold through the roof. However, even with the Fed’s massive QE intervention, the dollar has soared and until this year, gold was beaten up badly.
What has been your take on that?
Gerardo: What I see is that the U.S. dollar and the U.S. economy as the cleanest dirty shirt in the laundry basket.
There will be a day where the dollar weakens in every significant way and that will contribute to gold’s rise. However, I don’t think that will be the catalyst.
There are other currencies that will meet that fate first. Europe and Japan will implode before the U.S. does and that will send massive amounts of capital into the U.S. A small amount of that will reach the gold market, but the key thing to remember is that it only takes a small amount of that to influence a significant rise in the price of gold.
The gains in the best juniors will be phenomenal and the brutal bear market of the past four-plus years has taken all the risk off the table. Let me be clear, the junior resource sector is among the riskiest sectors you could allocate capital to but it’s also one where the gains can be unparalleled.
Jimmy: How do you see things playing out over the next few years? Is there a light at the end of the tunnel?
Gerardo: I believe it was Rick Rule who said there is a light at the end of the tunnel but that light may be a train.
I believe the conditions are now in place to once again begin carefully, but aggressively, positioning yourself in the best companies. And that’s my job in a nutshell…
Jimmy: What can readers of Resource Stock Digest expect when they subscribe?
Gerardo: You can expect monthly recommendations, project site visits, and interviews with management. With the volatility we are sure to see in the coming months and years, it’s important to be able to take advantage of profit opportunities in the market in real time.
As part of a subscription you will have access to all real-time trade alerts with clear buy, sell, and price point instruction. You can also expect a healthy dose of macro commentary because I feel that it is critical to understand how monetary and fiscal policy along with geopolitical developments affect our investment decisions.
Corruption, ZIRP, NIRP, the war on savers, the war on cash, and the war on privacy all have very real consequences for everyone, including those involved in the precious metals space. Most importantly, you can expect a very thorough vetting of every recommendation.
Jimmy: Thanks for the time and hospitality Gerardo, we’re thrilled to have you aboard.
Gerardo: Thanks Jimmy, I’m thrilled to be a part of it.
You can claim your first issue of Resource Stock Digest Premium right here. I wouldn’t wait another minute, Gerardo has already hit the ground running. He’s already bagged gains of 50%, 30%, and 20% in a mere couple of weeks.
