Don Durrett - gold, silver - Run #1379
Reporting Date: 2026-08-05
Completed
Run Details
- State
- Completed
- Started At
- August 05, 2026 at 02:17 AM
- Completed At
- August 05, 2026 at 02:21 AM
- Duration
- 4 minutes
- Headline
- Masterclass: Investing In Gold/Silver Mining Stocks (Part 2)
Data Preview
{
"title": "Masterclass: Investing In Gold/Silver Mining Stocks (Part 2)",
"filter": {
"keywords": [
"gold",
"silver",
"miners",
"mining"
],
"match_mode": "any",
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"title",
"description"
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"semantic_filter": true
},
"source": "youtube",
"channel": {
"url": "https://www.youtube.com/@dondurrett",
"title": "Don Durrett",
"handle": "dondurrett",
"channel_id": "UCtSChNaSSTZiUYlo4R1yPJw"
},
"matched": true,
"insights": {
"risks": [
"Less than half of developers/near-term producers/small producers will reach their potential.",
"Small gold producers have a poor risk-reward.",
"The risk-reward for exploration stocks is not compelling.",
"Over-trading and taking profits too early can lead to lost upside.",
"Companies making mistakes or not unfolding as expected."
],
"topics": [
"Gold",
"Silver",
"Mining Stocks",
"Portfolio Allocation",
"Risk Management",
"ETFs",
"Mutual Funds",
"Options",
"Leveraged ETFs",
"Buy/Sell Strategies",
"Technical Analysis",
"Fundamental Analysis",
"Market Cycles"
],
"summary": "This video, Part 2 of a masterclass, outlines a 'Pyramid Approach' for investing in gold and silver mining stocks. It emphasizes building a strong, diversified base with lower-risk assets like physical metals and ETFs, gradually allocating less to higher-risk assets such as junior miners and options. The speaker provides specific allocation percentages and buy/sell strategies, stressing the importance of patience and buying dips to maximize returns in a bull market.",
"entities": [
{
"name": "Don Durrett",
"type": "person",
"context": "Speaker and author of the book on the Pyramid Approach."
},
{
"name": "Goldstockdata",
"type": "organization",
"context": "Website mentioned by the speaker."
},
{
"name": "Amazon",
"type": "organization",
"context": "Platform where his book is available."
},
{
"name": "Pyramid Approach",
"type": "concept",
"context": "A portfolio construction strategy for gold/silver investments."
},
{
"name": "Gold",
"type": "commodity",
"context": "Primary commodity discussed for investment."
},
{
"name": "Silver",
"type": "commodity",
"context": "Secondary commodity discussed for investment."
},
{
"name": "Mining Stocks",
"type": "concept",
"context": "General term for companies involved in gold/silver extraction."
},
{
"name": "Junior Mining Stocks",
"type": "commodity",
"context": "Category of mining stocks, including explorers, developers, and small producers."
},
{
"name": "Mid-Tier Mining Stocks",
"type": "commodity",
"context": "Category of mining stocks, offering good risk-reward."
},
{
"name": "Major Mining Stocks",
"type": "commodity",
"context": "Category of mining stocks, forming part of the portfolio base."
},
{
"name": "Options",
"type": "other",
"context": "Financial derivatives, considered high-risk."
},
{
"name": "Leveraged ETFs",
"type": "other",
"context": "Exchange-Traded Funds that use derivatives and debt, considered high-risk."
},
{
"name": "Royalty Stocks",
"type": "commodity",
"context": "Mining companies that collect royalties, not explicitly on the pyramid diagram but mentioned."
},
{
"name": "1911 Gold",
"type": "organization",
"context": "A specific stock mentioned as an example."
},
{
"name": "Monero's SA",
"type": "organization",
"context": "A specific company mentioned as an example for FCF multiples."
},
{
"name": "Elite 8",
"type": "concept",
"context": "Refers to top-tier companies with high FCF multiples during frothy markets."
}
],
"sentiment": "bullish",
"confidence": 1.0,
"key_points": [
{
"point": "This video is Part 2 of a masterclass on investing in gold/silver mining stocks, focusing on portfolio construction fundamentals.",
"timestamp": "00:00",
"importance": "high"
},
{
"point": "The 'Pyramid Approach' for portfolio construction is detailed in his comprehensive 300-page book available on Amazon.",
"timestamp": "00:42",
"importance": "medium"
},
{
"point": "The Pyramid Approach emphasizes a strong base with higher allocation in lower-risk assets like physical gold/silver, bullion ETFs, and mutual funds.",
"timestamp": "01:00",
"importance": "high"
},
{
"point": "As you move up the pyramid, towards mid-tier, major, and junior mining stocks, and then options/leveraged ETFs, the allocation for each individual stock should decrease.",
"timestamp": "01:00",
"importance": "high"
},
{
"point": "Junior mining stocks are categorized into producers (small/near-term), developers (short-term and long-term construction), and explorers (various stages of discovery).",
"timestamp": "02:47",
"importance": "medium"
},
{
"point": "Royalty stocks are not on the diagram but would be placed between junior mining stocks and mid-tier mining stocks.",
"timestamp": "02:47",
"importance": "low"
},
{
"point": "The base of the portfolio utilizes diversification to protect against volatility.",
"timestamp": "04:05",
"importance": "high"
},
{
"point": "Lower-risk assets like physical gold/silver, ETFs, and mutual funds should have higher allocations.",
"timestamp": "04:05",
"importance": "high"
},
{
"point": "Right above the base, own a few major mining stocks with lower allocations.",
"timestamp": "05:25",
"importance": "medium"
},
{
"point": "This reinforces the base and creates more diversification.",
"timestamp": "05:25",
"importance": "medium"
},
{
"point": "Mid-tier producers offer the best risk-reward due to their free cash flow and ability to grow by acquiring smaller companies.",
"timestamp": "05:25",
"importance": "high"
},
{
"point": "High-quality mid-tier producers create a diversification effect.",
"timestamp": "05:25",
"importance": "medium"
},
{
"point": "He aims to own as many high-quality mid-tier producers as possible at a good entry.",
"timestamp": "05:25",
"importance": "medium"
},
{
"point": "The risk level increases significantly for developers, near-term producers, and small producers compared to mid-tier producers, but so does the reward.",
"timestamp": "06:55",
"importance": "high"
},
{
"point": "Use a checklist to lower risk when investing in this category.",
"timestamp": "06:55",
"importance": "medium"
},
{
"point": "He owns many developers/near-term producers/small producers but recognizes that less than half will reach their potential.",
"timestamp": "06:55",
"importance": "high"
},
{
"point": "It's okay to avoid exploration stocks completely as the risk-reward is not compelling and avoiding them will not hurt returns.",
"timestamp": "08:57",
"importance": "high"
},
{
"point": "His portfolio is about 5% explorers, but he wouldn't mind owning none.",
"timestamp": "08:57",
"importance": "medium"
},
{
"point": "Keep allocations low for exploration stocks.",
"timestamp": "08:57",
"importance": "high"
},
{
"point": "Royalty stocks can be useful for diversification or a conservative strategy, but he prefers ETFs/mutual funds for diversification.",
"timestamp": "10:28",
"importance": "medium"
},
{
"point": "Options and leveraged ETFs are only for aggressive traders.",
"timestamp": "10:28",
"importance": "high"
},
{
"point": "Physical gold/silver allocation should be 5% to 20% of the total portfolio value, with 5% as a minimum for a strong base.",
"timestamp": "11:00",
"importance": "high"
},
{
"point": "ETFs/Mutual Funds allocation should be 5% to 10% of the total portfolio value for diversification and volatility protection.",
"timestamp": "11:00",
"importance": "high"
},
{
"point": "Producers allocation should be 40% to 50% of the total portfolio value, as this is where most money will be made.",
"timestamp": "11:00",
"importance": "high"
},
{
"point": "Developers allocation should be 20% to 30% of the total portfolio value (20% conservative, 30% aggressive).",
"timestamp": "11:00",
"importance": "high"
},
{
"point": "Explorers allocation should be 0% to 5% of the total portfolio value (0% is acceptable).",
"timestamp": "11:00",
"importance": "high"
},
{
"point": "Cash allocation should be 1% to 5% of the total portfolio value.",
"timestamp": "11:00",
"importance": "high"
},
{
"point": "Per stock purchase, ETFs/Mutual Funds should be 1% to 5% of the total portfolio cost-basis.",
"timestamp": "13:15",
"importance": "high"
},
{
"point": "Per stock purchase, Majors should be 0.5% to 3% of the total portfolio cost-basis.",
"timestamp": "13:15",
"importance": "high"
},
{
"point": "Per stock purchase, Mid-Tier Producers should be 0.5% to 3% of the total portfolio cost-basis.",
"timestamp": "13:15",
"importance": "high"
},
{
"point": "Per stock purchase, Developers should be 0.3% to 2% of the total portfolio cost-basis.",
"timestamp": "13:15",
"importance": "high"
},
{
"point": "Per stock purchase, Explorers should be 0.3% to 1% of the total portfolio cost-basis.",
"timestamp": "13:15",
"importance": "high"
},
{
"point": "Be systematic and consistent in portfolio building, focusing on risk-reward.",
"timestamp": "13:15",
"importance": "high"
},
{
"point": "For traders, 10 to 30 stocks make sense, but it requires daily/weekly management.",
"timestamp": "15:23",
"importance": "high"
},
{
"point": "For buy-and-hold investors, 40 to 80 stocks is an ideal number for less active management.",
"timestamp": "15:23",
"importance": "high"
},
{
"point": "He personally holds over 80 stocks (currently 168) as a long-term investor, having collected them over 20 years.",
"timestamp": "15:23",
"importance": "medium"
},
{
"point": "The number of stocks in a portfolio depends on individual personality and management style.",
"timestamp": "15:23",
"importance": "high"
},
{
"point": "There's a 'slippery slope' where aggressive rebalancing and profit-taking can lead to giving up significant future profits (lost upside).",
"timestamp": "17:27",
"importance": "high"
},
{
"point": "Do not be afraid to sell a stock if it's not working or the story has changed.",
"timestamp": "17:27",
"importance": "high"
},
{
"point": "He doesn't have any 'dogs' (underperforming stocks) in his portfolio because he constantly gets rid of them.",
"timestamp": "17:27",
"importance": "medium"
},
{
"point": "Do not chase rallies; instead, buy dips.",
"timestamp": "20:05",
"importance": "high"
},
{
"point": "You make your money when you buy, not when you sell. A better entry means more leverage.",
"timestamp": "20:05",
"importance": "high"
},
{
"point": "The HUI index was historically trading between 200 and 300, and is now at 650. Buying below 225 was a good 'buy zone'.",
"timestamp": "20:05",
"importance": "high"
},
{
"point": "Gold's 200-day moving average is 4100. When gold broke below this in June and again in January, these were buying opportunities.",
"timestamp": "20:05",
"importance": "high"
},
{
"point": "People tend to buy when rallies are running, not during dips, which is ironic.",
"timestamp": "20:05",
"importance": "high"
},
{
"point": "Ride the train, buy the dip. Be right, sit tight.",
"timestamp": "24:06",
"importance": "high"
},
{
"point": "Build your portfolio during dips, then wait patiently for big returns.",
"timestamp": "24:06",
"importance": "high"
},
{
"point": "We will know when this bull market gets frothy by looking at free cash flow (FCF) multiples; they will be high.",
"timestamp": "24:42",
"importance": "high"
},
{
"point": "Currently, FCF multiples are very low, indicating the market is not frothy.",
"timestamp": "24:42",
"importance": "high"
},
{
"point": "Monero's SA was trading at a 1 FCF multiple not long ago and is now around 4.",
"timestamp": "24:42",
"importance": "medium"
},
{
"point": "The 'Elite 8' companies will have FCF multiples above 20 when the market is frothy.",
"timestamp": "24:42",
"importance": "high"
},
{
"point": "We are currently bouncing on the bottom, not frothy, so we want to be patient and wait to sell.",
"timestamp": "24:42",
"importance": "high"
},
{
"point": "Have an exit strategy for each stock.",
"timestamp": "25:53",
"importance": "high"
},
{
"point": "It's more difficult to sell than to buy.",
"timestamp": "25:53",
"importance": "high"
},
{
"point": "Identifying an undervalued stock is easier than knowing the right time to sell.",
"timestamp": "25:53",
"importance": "high"
},
{
"point": "Each stock will have its own criteria for when to exit, such as if the story changed, its upside is now constrained, or the risk-reward has turned negative.",
"timestamp": "25:53",
"importance": "high"
},
{
"point": "Pick a top in advance (e.g., $7,000 to $8,000 gold) to identify target exit prices for individual stocks.",
"timestamp": "27:56",
"importance": "high"
},
{
"point": "Project a company's potential market cap at those gold levels to determine an exit share price.",
"timestamp": "27:56",
"importance": "high"
},
{
"point": "He already has target exit prices for about 50 stocks using his Share Price Forecast Tool.",
"timestamp": "29:19",
"importance": "medium"
},
{
"point": "These target exit prices will change based on factors like how pricey the stock has become, its production/costs/margins, and his expectations.",
"timestamp": "29:19",
"importance": "high"
},
{
"point": "Once Leg 3 of the bull market arrives, we will begin to sell.",
"timestamp": "30:17",
"importance": "high"
},
{
"point": "Leg 1 of the gold bull market saw gold go from $4,000 to $5,600 and silver from $35 to $120.",
"timestamp": "30:17",
"importance": "high"
},
{
"point": "Leg 2 will be the next move up for new all-time highs, likely topping around $6,500 for gold.",
"timestamp": "30:17",
"importance": "high"
},
{
"point": "Leg 3 will follow a correction from Leg 2, moving from around $5,500 to $8,000 for gold.",
"timestamp": "30:17",
"importance": "high"
},
{
"point": "Early in Leg 3 is a good time to swap out poor performers for trending stocks.",
"timestamp": "30:17",
"importance": "high"
},
{
"point": "For big winners, use trailing stops (e.g., 20-25%) after taking partial profits (e.g., 75%).",
"timestamp": "30:17",
"importance": "high"
},
{
"point": "Define a 'minimum level' (e.g., $5,000 valuation) for stocks you like; buy stocks below this level to bring them above it.",
"timestamp": "32:50",
"importance": "high"
},
{
"point": "Avoid adding to stocks already above your minimum level unless they are exceptional.",
"timestamp": "32:50",
"importance": "high"
},
{
"point": "He recently bought shares of 1911 Gold, which was trading at $0.48 USD, believing it should be at $1.00 USD.",
"timestamp": "34:47",
"importance": "high"
}
],
"trade_ideas": [
{
"entry": "0.48 USD",
"target": "1.00 USD",
"thesis": "The stock is currently undervalued at $0.48 USD and should be trading at $1.00 USD.",
"direction": "long",
"conviction": "medium",
"instrument": "1911 Gold",
"time_horizon": "unspecified"
}
],
"price_levels": [
{
"note": "Historical low end of range",
"value": "200",
"instrument": "HUI Index",
"level_type": "other"
},
{
"note": "Buy zone",
"value": "225",
"instrument": "HUI Index",
"level_type": "support"
},
{
"note": "Historical range",
"value": "250",
"instrument": "HUI Index",
"level_type": "other"
},
{
"note": "Historical high end of range",
"value": "300",
"instrument": "HUI Index",
"level_type": "other"
},
{
"note": "Current level",
"value": "650",
"instrument": "HUI Index",
"level_type": "other"
},
{
"note": "200-day moving average",
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"instrument": "Gold",
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},
{
"note": "Buying opportunity",
"value": "3950",
"instrument": "Gold",
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},
{
"note": "Buying opportunity",
"value": "4000",
"instrument": "Gold",
"level_type": "support"
},
{
"note": "Consider putting on brakes",
"value": "4200",
"instrument": "Gold",
"level_type": "other"
},
{
"note": "Consider putting on brakes",
"value": "4300",
"instrument": "Gold",
"level_type": "other"
},
{
"note": "Rallying price",
"value": "4800",
"instrument": "Gold",
"level_type": "other"
},
{
"note": "Consider putting on brakes",
"value": "5000",
"instrument": "Gold",
"level_type": "resistance"
},
{
"note": "Consider putting on brakes",
"value": "5200",
"instrument": "Gold",
"level_type": "resistance"
},
{
"note": "Top of Leg 1",
"value": "5600",
"instrument": "Gold",
"level_type": "resistance"
},
{
"note": "Anticipated top of Leg 2",
"value": "6500",
"instrument": "Gold",
"level_type": "target"
},
{
"note": "Exit plan range",
"value": "7000",
"instrument": "Gold",
"level_type": "target"
},
{
"note": "Exit plan range and anticipated top of Leg 3",
"value": "8000",
"instrument": "Gold",
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},
{
"note": "Start of Leg 1",
"value": "35",
"instrument": "Silver",
"level_type": "support"
},
{
"note": "Top of Leg 1",
"value": "120",
"instrument": "Silver",
"level_type": "resistance"
},
{
"note": "Recent trading price",
"value": "0.48 USD",
"instrument": "1911 Gold",
"level_type": "other"
},
{
"note": "Fair value",
"value": "1.00 USD",
"instrument": "1911 Gold",
"level_type": "target"
}
],
"time_horizon": "medium_term",
"matches_filter": true,
"data_references": [
{
"value": "200-300",
"metric": "HUI Index",
"source": "Market Prices"
},
{
"value": "650",
"metric": "HUI Index",
"source": "Market Prices"
},
{
"value": "4100",
"metric": "Gold 200-day moving average",
"source": "Technical Analysis"
},
{
"value": "4000 to 5600",
"metric": "Gold",
"period": "Leg 1",
"source": "Market Prices"
},
{
"value": "35 to 120",
"metric": "Silver",
"period": "Leg 1",
"source": "Market Prices"
},
{
"value": "1 then 4",
"metric": "Free Cash Flow (FCF) multiple",
"source": "Company Financials"
}
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"match_reasoning": "The video substantively discusses investing in gold and silver mining stocks, covering portfolio construction, allocation strategies, and buy/sell tactics."
},
"video_id": "8WEawi_BhUU",
"video_url": "https://www.youtube.com/watch?v=8WEawi_BhUU",
"transcript": "Hey everybody, Don Durrett, Goldstockdata. I'm doing my masterclass. Um, this is part two, building a portfolio. The first one was an introduction. Um, I think it's just going to be four parts. Part three and part four are analyzing stocks. And this is part one was more my thesis, and this is how to build a portfolio. Kind of the fundamentals before you start buying stocks. Um, so we'll start there. Um, the pyramid approach. So how to build a portfolio. So, I put this in my book. You guys probably want to read my book. It's on Amazon. It's um, very comprehensive book, 300 pages long on how to analyze these things. And in the book, I I have this pyramid that I created. So the focus the the idea of the pyramid is the base is very strong, and the base has more you have more allocation into this. As you go up, you have less less allocation for each individual stock. So the bottom, um, is physical, um, and we'll talk about allocation later on that. So physical bullion and coins, and then bullion ETFs, gold mutual funds and gold miner ETFs. Um, and you could also have these bullion spot like um, SLV, CEO. Um, so, um, these are assets that have or basically good for diversification. They're like the foundation, if you will. Uh, and then as we move up the pyramid, you're going to have less allocation. So we have majors, and we have mid-tiers, and when you these are basically quality producers. So this is your really your base, this this whole section. So the more allocation you have into these, you can withstand volatility. So that's the whole purpose of this base. Um, is to is to create um, volatility. Now, I'm going to have a lot more mid-tiers than majors, but I'm going my allocation is going to for per stock is probably going to be less for the mid-tiers and the majors. Um, and then, so this is kind of your foundation. Then as we move up, the junior mining stocks (explorers), junior mining stocks (development), junior mining stocks (producers). This is actually small producers. And it's also near-term producers. Or you could put near-term producers in a separate category. Then we have developers, and developers there's like three different I think developers you can put in like three categories. Um, which one would be the near-term producers, which are developers. Then you have developers that are going to be say in construction within three years, and then longer term construction, you know, four years or later. And then then the explorers, you could also break those also up. Um, you could have explorers that have optionality. You can have explorers that are drilling out existing discoveries. You have explorers that have no discovery. Um, then you have project generators. So this is there's kind of a group of these. And then you have leveraged ETFs and options. The one thing I don't have on here is royalty stocks. Um, I would probably put the royalty stocks in between a junior mining stocks and mid-tiers. I'd probably put them right in here, but they didn't make the list. Okay, building a strong base. Um, so I talked about how when we went over that diagram that the base is is going to be used to protect against volatility. So it's kind of your we're diversifying against volatility because these are kind of lower-risk stocks, for instance, physical metal. Um, ETFs, mutual funds, those the odds of those going bankrupt are much lower than individual stocks. So we're trying to when we get in when you have a lot of volatility, these are the stocks that are going to survive, are going to come back. So we're going and so we're going to add these lower-risk stocks using higher allocations. Um, and I talk about the allocations later on. And then the majors are next, right above the base. You want to own a few of these for allocation purposes, for diversification purposes, um, to be able to withstand a lot of volatility. Um, and what once you get to producers, you're going to use lower allocations, and so as the pyramid narrows, you use lower allocations. Um, and this is kind of how we reinforce the base. And then the mid-tiers are also part of the base, and it kind of more reinforcement. I would call this this whole area here of assets kind of the base because mid a a strong mid-tier producer can have a billion, two billion market cap, can be almost as strong as a major. Um, and so and I the mid-tiers, this is where I think it has the best risk-reward. And the reason why because these are the sharks. They have a lot of free cash flow. They want to grow the company. They want to become majors. So majors, it's not as easy for them to grow as the mid-tiers. And below the mid-tiers, it's really difficult for those companies to grow. Small producers or developers, it takes a lot of time. So this is the one category where you can have a lot of growth, a lot of quick growth. They can swallow up this is what I call the sharks. Um, they can swallow up a lot of smaller companies. They can swallow up another mid-tier, and they can grow fairly quickly. So I I consider this the best risk-reward because of their ability to grow, and because of their ability to have good balance sheets. Um, so these and the higher the quality, the more diversification effect they they have. So I want to own a lot of high-quality producers versus some marginal ones. And I want to own as many of these mid-tier producers that I can, but I want a good entry price. Um, developers / near-term producers / small producers. Um, developers and near-term producers, um, these can definitely be in the same bucket. Small producers, I could put that separately, but one I don't want to own a lot of small producers because especially small gold producers, the risk-reward just isn't that great. Small silver producers, those are more rare, so I'm more open to those. I I will seek those out. Um, but the risk level increases significantly once you get to this this bucket, uh, versus say mid-tier producers or um, majors. But the reward goes up significantly as well. Um, and the the risk level really jumps when you get to this this group. So you want to use my checklist, which is going to be part three, um, of the masterclass about we're going to go over the how you can avoid risk when you buy these this group. Um, I own a lot of these stocks, developers, near-term producers, small producers. Um, but I also recognize that about half of them are not going to reach their potential. And and probably only about a third to two-thirds, um, are going to, you know, hit their potential, if you will, um, or do better, or be a high performer. There's always going to be um, stocks that disappoint you, and this is kind of the group that doesn't. Um, they just they don't have, you know, they don't have the quality management teams that the mid-tiers do. They don't have the balance sheets. They don't have the properties. Um, and so you have to be careful. So you want to keep your be be careful with how much you allocate to these. Don't consider them sure things. Um, the next group is the explorers, and I said as I said earlier, you can kind of break these explorers into various groups. Uh, project generators would have a lot of properties. Uh, companies that are drilling out existing deposits. Uh, companies that have early discoveries. Uh, companies that don't have any discoveries. So there's lots of those different buckets. It's okay to avoid exploration stocks completely. And the reason why is because the risk-reward is not that compelling. And if you avoid them, it's not really going to hurt your returns. So you focus on producers and this these these three groups here, developers, near-term, small producers. There's going to be plenty of stocks to choose from, and your up your your alpha returns are going to be big enough where you don't necessarily need to own any explorers to get the big alpha. It's not necessary. It's not going to hurt your returns. I have about 5% of my portfolio as explorers, but if I owned none, it wouldn't bother me. Um, I I do own some explorers. I think a lot of the reasons why I do it is to kind of help you guys so I understand them. Um, that I I don't want to avoid explorers. I just feel like in some respects, um, I do it, you know, just for for interest because a majority of the stocks are exploration companies. So for me to understand explorers, I really need to own them. Um, but I keep my I keep my allocations low. Um, other, uh, there's some additional groups. The royalty, I mentioned the royalty go in between developers and mid-tier. And then the very top of the pyramid is your option and leverage ETFs. And these are really for just, uh, aggressive traders. And the royalty stocks, they can be useful for diversification, but I prefer to use ETFs and mutual funds to diversify. Um, they're also very useful if you have a conservative strategy. Um, how to allocate. So, by a category. So this is for your total portfolio value. Um, this is a good general. You guys don't have to copy it, but it's a kind of a general idea of how I I prefer I prefer. So physical, 5% to 20%. Um, I think 5% should be a minimum, uh, goal. Uh, it's good for creating a strong base. Um, I don't think anybody needs more than 20% physical. That's very conservative, but 5 to 10. And then ETFs, mutual funds, um, 5% to 10%. Um, again, the reason why, um, is for diversification for for for volatility. Um, and the more conservative you are, you can, you know, add add more. Producers, uh, 40% to 50%. I think this is where you're you're going to make most of your money because the developers are going to become producers. But the producers are going to participate. As the price of gold and silver go higher, um, the silver the the producers are absolutely going to participate. They're going to go higher with the gold and silver prices. Going all the way up to 60%, um, is not a problem. Uh, but I think 40 to 50 is kind of a good general area to focus on. Um, but I'm not going to be disappointed if I get 60. My total portfolio is at 60. Um, developers, 20 to 30%. I think 20 is conservative, 30 is aggressive. And then explorers, I think zero is not a problem, and 5% is okay. Some people will go all the way to 10. Um, I don't see that as if you're chasing alpha, I I I just don't think that's necessary. Some people like to chase drill results. And then your cash, how much cash do you have? 1% to 5%. It's a good general idea or good thing to shoot for. I don't particularly like, um, having 3% because I'm I'm I want to get put my money to work. And so if I get to 3%, I get antsy. I want I want to buy some miners. 2% to me is around a sweet spot. 1% is kind of a minimum. Per stock purchase, um, how how much are you going to allocate per stock? And this is for your total portfolio cost-basis. So I you look at your total cost-basis, and then what is 1%, what is a half percent, what is, you know, 0.3? And so I like to use, um, these numbers for I like to use cost-basis when I do purchases, but when I'm holding my portfolio, I like to use the value. Um, that just reminded me, I wanted to talk about minimum levels. Um, I can talk about that, um, at the end. That's not on my PowerPoint. Um, ETFs, I think 1% to 5% per ETF, um, makes sense. 5% is very, um, I guess aggressive would be the word. You don't putting 5% in one stock. But 2, 3% absolutely makes sense. And then majors, um, uh, 0.5 to 3%. Um, and mid-tiers, 0.5 to 3%, so kind of the same. And then developers, 0.3 to 2%. Explorers, 0.3 to 1%. I really wouldn't want to put one more than 1% in an explorer. I wouldn't do that. And and it's it's really, for me, I I have a lot of stocks. I have like I think about 168 right now. So I I'm not going to put, you know, 2% in a developer, but some of them will get 1%. Um, you guys, if you're only going to have 40, 50, 60 stocks, you you can go towards more of these bigger numbers on a per stock basis. But, um, if you try to be systematic about building your portfolio, uh, try to be consistent. And this is all about risk-reward. So if you have a mid-tier producer that it's kind of marginal, it's only going to get 0.5, but then if it's you, you know, your your favorite mid-tier, you might do three. And so, and then between 1.5. So you want to be systematic about it. How Many Stocks? If you're a trader, I think, um, 10 to 30, uh, makes sense. But if you only have 30, you are a trader because the reason why you are a trader is because there's going to be volatility. And those 30 stocks are going to have some of them are going to have significant allocation, and you're going to be doing more balance rebalancing than than me, for instance. And and you're going to have to watch these stocks, and the fewer you have, the more you're going to have to watch them like a hawk. And some of these stocks, you're going to have to trade them daily or weekly, and I don't want to trade stocks daily or weekly. I'm pretty much happily, you know, monthly or quarterly. Um, buy and hold, um, I think if you don't want to be a trader, I think 40 to 80 stocks, I think this is kind of an ideal number. Um, I got to 80, and I just I couldn't stop, but I've been been collecting these for a long time. 20 years I've been collecting these stocks. Um, so I got to 80, and I I couldn't stop. I I basically couldn't say, okay, these are the only eight I want, and I'm going to keep these eight. And then I'm going to buy a new one, and what am I going to do now? I have to sell another one. How do I buy a new stock? And so I just, um, I just kept collecting them. So you have to decide which of these three are you going to do as far as how many stocks. And it all depends by personality. Um, you know, if you if you can handle trading, I think trading is the best way to make money, but it's a lot harder because you have to manage you have to manage that portfolio on a daily, weekly basis. Whereas 40 to 80, it's more of a monthly basis. Um, you don't because you don't have high allocations. Um, it's it, you know, one stock's really not going to bite you per se. Like me, I don't really worry. I do pay attention to the news. So if if a stock has a problem, if the story changes, and we're going to talk about that about selling your dogs. Um, but that's kind of a overview of how many stocks. Okay, rebalancing / swapping / taking profits. So you have to be really careful. There's a slippery slope here. Um, the more aggressive you are at rebalancing, swapping, and taking profits, the more you become a a trader. And as you become a trader, what happens where the slippery slope comes in is you give up a lot of profits. You're not selling smart. You're taking too many profits. You're doing too many profits swapping, and you're doing too much rebalancing. And so instead of waiting to get to the top of the mountain, as soon as you get a one-bagger or two-bagger, you're you're taking some profits. When you do that, you're giving away, um, if if you sell half of a stock, you're giving away half of your upside. Future upside. So you got to be careful on lost upside when you're when you're doing these swapping. Um, so you want to buy smart, sell smart. Um, and we're going to we're going to talk a little bit more about that. And then selling your dogs. And so if a stock isn't working, if the story has changed, sell. But I I will give stocks a lot of rope. I'm not going to I don't sell immediately unless something, you know, significantly happened. Like if if one of my companies got acquired by a stock a company I didn't like, I'm going to sell it immediately. Um, I do that a lot. Um, uh, and so or if a stock a company runs into a problem, um, if it doesn't unfold like you expected it to, you had like a certain assumption. Um, but don't be afraid to sell a stock at all. Don't be afraid. Like right now, I have 168 stocks. I don't have any dogs because I'm, you know, I'm constantly getting rid of them. And so and so I don't even have any stocks right now that are on probation. Like I I put stock companies on probation. Like I put Lion One on probation, and I sold it, you know, when they fired their CEO. Um, that was kind of a three strikes you're out situation. I'll go back in. If they if they can show me they're going to get to 50,000 ounces a year, I might go back in. But, you know, but right now, I don't have any companies on probation. But you want to put your companies on probation. If companies make mistakes, like a lot of people like they put Denarius on probation because or they sold Denarius because they did they did a big dilution. But I didn't even put Denarius on on probation for that dilution. They'd have to make more mistakes. But if a company's making mistakes, you can put them on probation, and then they make another mistake, and then you sell them. Uh, buy smart, sell smart. So, you don't want to chase rallies. Um, instead, you want to buy dips. Um, I've been doing this for a long time, and I remember when the HUI was at, you know, going up and down, or it was flat. And it was basically going between 200 and 300. Um, and right now it's at 650. But back then, it got above 250, and I put the brakes on. I would wait. I'd wait for the next correction. Sure enough, it would go back down, and it would get below 225, and that was kind of my buy zone. 200 to 225 was my buy zone. And then it would go when it once in a while, it would go below 200. It went below 200 in October of '23. It went below 200 in January of '24. Those are like, you know, kind of load the boat, um, uh, situations when it got below 200. And so you you have to think in those terms. So now we're like 650. So we're no longer in that really, really fantastic, uh, time frame where you can buy these massive dips. Um, it took a long time for the HUI to break out above 300 and then above 400. Now that it has, you have to look for for 200-day moving averages. So the 200-day moving average, you can look at it for individual stocks. You can look at it for the HUI. So we and you can look at it for gold. So gold, the 200-day moving average is 4100. It broke down below that in June. That created a buying opportunity. Um, and I bought that one. Then it went again. It went down to 3950, another buying opportunity. And now right now, we're at 4100. We're still down here, kind of bouncing on the bottom. This is the dip. This is the chance. Now, this this is when you want to you this is so when you buy these deep dips, you you make money when you when you buy, not when you sell. Because if you buy a stock at a dollar, and it goes up 10x, you get a 10-bagger. If you buy a stock at $2, it and it goes to $10, you only get 5x. So the smart smart entry was $1, not $2. And it doubles your returns. And then once it goes if it goes to $10, you got a 10-bagger. If it doubles, you get a 20-bagger. Um, and so you you go from a and so the compounding really comes into play with these miners because a stock a miner can double very easily. So once it's a five-bagger, it doubles, it's a 10-bagger. So you want to make you make your money when you buy. You want to get these really good entries. You don't want to chase rallies. You don't want to So when gold, like right now, it's at 4100. I'm already starting to stomp on the put on the brakes going. If it gets to 4200, I'm like, oh, do I really want to keep buying? 4300. At that point, I'm like, okay, I'm going to wait for the next correction. And that's why I don't keep a lot of cash, like, you know, 2%. Um, and then wait for the next one. Wait for the next 200-day. I think we're going to get one more correction. So I'm But as we as these rallies go, most people are going to be buying these. The the irony is that people like to to to chase rallies. In other words, gold gets to 4800, and they're like, and then it it rips from here to 4800, and and it's running, running, running. That's when they like to have to buy, ironically. And then they'll buy 5,000, 5200, you know, they'll buy all the way to the top, right? And then you get the then you get the big correction, right? We went 5600, and it went all the way down to 4,000. When it got, you know, above 5,000, that's when you wanted to put on the brakes. Um, and, you know, most people didn't. Um, and so you now you know, okay, once it goes, you got to be you want to buy the dips. Um, so that's buying smart. Selling smart, um, I'm pretty sure we're going to talk more talk about that in another slide. So I'm I'm going to hold off on on selling smart. I'll come back to it. Um, now, uh, once we get to Leg 3, um, at that point, we're going to begin to sell. So Leg 1, we just finished, which was well, in January. Leg 1 was when we got gold went from 4,000 to 5,600, and silver went from 35 to 120. That was the top of Leg 1. Now we're correcting, and then Leg 2 will begin. Leg 2 will be the next move up for new all-time high. Leg 2, we're not necessarily going to sell anything because Leg 2, we know is going to peter out at a certain point. I think it'll basically top around 6500. And then we'll have another correction down to say 5500. And then Leg 3, I think will be around 5500 all the way up to 8,000. So Leg 3 is when we will begin to sell. Um, but some of you will take profits in Leg 2, but you want to be careful about selling too early, about being selling smart. So, um, once we get to Leg 3, that's when things are going to start to get frothy. And so that's when you're going to basically say, okay, this stock's a poor performer. We went through Leg 2. We went through Leg 3. We're in Leg 2. Okay, this one's never going to this never one's going to get off the mat. I'm going to swap him out for a stock that's working. And you want to do this kind of early on in the Leg 3 stage. That way, that money starts working better. Uh, so that stock's not going to perform as well as another stock. So that's going to be a really good time to do swapping is early in Leg 3. And then some of these stocks that are big winners, at that point, you're going to probably want to do a trailing stop on some of these, or sell them all. But a good way to do the trailing stop is like sell 75%, keep 25%, and put a 25% trailing stop on it. Or maybe a 20% trailing stop. And then let that trailing stop slowly go up and and hopefully that final 25%, it won't that that company will not have a significant correction. Um, and if it doesn't, um, it could keep running, running, running. And that last 25% could end up doing as well as that initial 75%. Okay, um, that's it. Um, so that's the end of part two, the masterclass. Um, oh, the one last thing I want to talk about was minimum, uh, your your what I call my minimum level. Um, and this is part of your allocation. So, your minimum level is your minimum allocation for a stock that you like. So let's say that, you know, your portfolio is $100,000, and your minimum level for a stock that you like is 5,000. So what you do is you sort your stocks by valuation from the highest to lowest. And you basically draw a line at 5,000. Any stock that has a current valuation below 5,000 that you like, you put that on a buy list, and you add you buy it and get it above 5,000. And I do this all the time. And and you do it during corrections. So, I mean, you might have bought a stock at five at 5,000. You might have bought it at 7,000, and then it corrects down. And now it's below your minimum level. And so at that point, you you add shares. You basically buy the dip, and you get it back above. And the reason why this is important for me to keep stocks above this minimum level is that I don't want stocks that I like to be under-allocated. So that minimum level is kind of an under-allocation level for stocks that you like. And so I'm constantly buying stocks below that minimum level, get them above it. I like that stock. Why do I have a low under why is it under-allocated? Get it above. Now, if I have a stock that's above the minimum level, I'm not going to add to it unless I really like it a lot. And and those are rare situations where there's stocks above my minimum level, and I'll look at them and go, you know, I really like that stock. I know it's above my minimum, but I want to bump it a little more. A few of those I will do. I actually did that today for one stock. I'll actually tell you which one it was. 1911 Gold. It basically has been beat up here. It's trading at 40 8 cents US. Um, I thought 48 cents US was just ridiculous. Um, it should be trading at a dollar. So I'm getting I'm buying this thing less. I think it should be trading at a dollar US right now. I'm trading like half off. Most of these stocks are half off. And I'm like, okay, I'm going to buy the dip here. So I added I added a few shares of that one. But it's it's well above my minimum level. So once in a while, I will do it for a stock that I like that's beat up. Um, so that's that. And so we'll end it there. So.",
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