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CEO.CA members discuss high-risk penny stocks which can lose their entire value. Only risk what you can afford to lose.
MiningBookGuyRecommending “The Investor’s Guide to Penny Mining Stocks” by Robert (Bob) Bishop, published in 1987
-This is a really good one. Still very practical and well-organized. If you are new to the industry or want just one “penny mining stock” book recommendation, this would be it.
-Basic (but useful) technical info on how to evaluate exploration/development projects leads into an overview of the different exchanges. I like that he even touched on Australia, which had one of the best gold booms of the 1980s, but which was really hard for North American’s to speculate on back then. The ease with which to speculate around the world is one of our greatest advantages today.
-If interested, you’re in luck. Easy to find this for ~$4 online, and I’m sure this is one of the easier, older books to find in a used bookstore in Canada:
dirkdiggler'Reminiscences of a Stock Operator' When I first started trading commodities, as a young punk in the 90's, my broker / mentor insisted I read it. There was also a well known fund manager that was a regular on 'Wallstreet Week' (with Louis Rukeyser) that made it a mandatory read for his staff. #miningbooks
AllanMy favorite book on investing is Beating the Street by Peter Lynch. I loved the first chapter, Miracle of St. Agnes, when he writes about a group of grade 7 students that pick a group of stocks in a stock picking contest against Wall Street money managers. And beat them easily. The parallel in mining is you don't need to be a geologist or engineer to be a good stock picker in mining stocks. #miningbooks
MiningBookGuy@Allan - if someone wanted to read Peter Lynch for the first time, I would recommend "One Up On Wall Street" before "Beating The Street". They're both good, but "One Up" is earlier, and I think it's his best. Not sure if you read that one as well. #miningbooks
dirkdiggler'Market Wizards' by Jack Schwager is a book where he interviews some of the top, most serially successful traders (of that time). There's two 'Market Wizards' actually (one and two). The interviews are very intimate and revealing. Read both of those many times over. #miningbooks
@MiningBookGuy@T - check #MatthewHart room. I highly recommend his "Diamond" book as the best 1st book on diamonds. I have some others I'm in the middle of. Once I get through them, will eventually post them if no one else does first. #miningbooks
@MiningBookGuy@NicholasLePan - good advice from Andrew. if you're looking for "general stock evaluation", there are a few in #books or #miningbooks , but there's a lot more mining specific stuff. I'd recommend "Intelligent Investor" by Benjamin Graham and "One Up on Wall Street" by Peter Lynch as good starting points from the ground up. I won't post any other books in this main chat. But you can send me a private message if you want more ideas. I've read a lot of these.
@MiningBookGuyWhen I first started posting on #ceochat , one of the first books I recommended was #thegoldbook by Pierre #Lassonde . I still highly recommend it as the best single source for valuing miners (even if they’re not #goldminers ). It’s really well written by an authorative source, and little to none of the information can be found on the internet. Great for newbies and vets.
I see a couple copies for ~$20 , which I consider good value. (please be aware there are a few versions. I own both and they are great. But there is variation): http://www.amazon.com//gp/offer-listing/0140247483/sr=/qid=/?condition=used&tag=bkfndr79-b-20
BUT, this is not my top book on GOLD. I have a “#1 recommendation” for a book on #gold and #goldhistory, that still has some great chapters on #goldmining ..and it’s a lot cheaper than #thegoldbook . And I would bet that a lot of people in here aren’t even aware of the author.
I’ve been preparing a monster post that I’ll have ready in a few minutes...
I apologize in advance for how long this upcoming post has actually become (I certainly wasn’t planning to write this much!) This is kind of an experiment to see if people like the information being delivered on #ceochat this way…we’ll see!
@MiningBookGuyOK, there are actually 2 #gold books recommended here. But as you read, you’ll see I clearly like one the best (if you only want 1). I would highly recommend both as they go well together.
1.“The New World of Gold” by Timothy Green - http://www.amazon.com/New-World-Gold-Politics-Investors/dp/0802706924/ref=sr_1_2_twi_har_2?s=books&ie=UTF8&qid=1445876603&sr=1-2&keywords=%22the+new+world+of+gold%22
1981-1984 (NOTE - I only own the 1981 copy. Not sure about any changes for later editions)
There are currently multiple copies for ~$4 on Amazon , excellent value.
2.“The Prospect for Gold” by Timothy Green - http://www.amazon.com/Prospect-Gold-View-Year-2000/dp/0802710026/ref=sr_1_3?s=books&ie=UTF8&qid=1445876746&sr=1-3&keywords=%22the+prospect+for+gold%22
There are a few copies on Amazon for ~$5, a great value. But you can find even more for a bit cheaper using #BookFinder .
Please be aware that there are A LOT of #gold books by #TimothyGreen (he’s an amazing, underrated and prolific writer). It can get confusing. While I recommend these two above others, there is significant overlap between “The New World of Gold" with the earlier “The World of Gold” book by the same author. I find all his books are fun to read.
But, there are a few reasons I recommend “The New World of Gold” as "THE ONE", the #1 copy you should buy, if you only want one, excellent book on #gold :
-Much less focus on #SouthAfrica for #goldmining, though it was still dominant in the early 1980s. This book is great for showing the early transition from the huge, historic South African mines to the upstarts in other countries. I especially liked the contrast of the #SouthAfrica, #Canada, and #Brazil mining chapters.
-The contrast between the physical and paper gold markets (and general history) is incredibly valuable. The late 70s/early 80s was a turning point from which things haven’t really changed. The original “The World of Gold” book in the late 1960s focused on the physical gold market for smuggling, centered in Beirut. For the paper market, the center became the COMEX in NYC by the early 80s. But there’s some fascinating chapters on #HongKong and #Singapore, where Hong Kong was a unique speculative market like the COMEX for Asians, while Singapore was more about distributing physical gold, especially to Indonesia. (though there’s physical and paper markets in all of these places)
Many valuable details on the contrast of physical/paper gold, and gold as a speculative vs insurance vehicle. This might be the #1 reason to recommend this book over all of #TimothyGreen ’s other ones, if you only want one.
-Oh, and super valuable details on how the run-up in the gold price in 1979/1980 is directly related to the newly rich families in the #MiddleEast turning oil money into gold gambling.
"The Prospect for Gold” is well worth a look for the following reasons:
-I consider it my best book for global #goldmining in the 1980s. There is much more of a focus on that decade, as well as looking towards the future rather than the past. More information on goldmining in #USA and #Canada , some good info on #heapleaching . Some good details on #Hemlo , and I was especially interested in the #Lupin mine owned by #EchoBay at the time, when it was the world’s most northerly gold mine, where #Nunavut is today. Also good stuff on gold in #Australia , and early look at #China , with even a mention of Robert #Friedland going there with #GalacticResources. And more on other parts of the world.
-Chapter 13 in this book titled “Investors: Portfolio Manager Versus Souk” is really valuable. Fascinating look at how physical gold flows through #Dubai , #Singapore , and #HongKong , and how this interacts with the speculative paper price set in places like the COMEX in NYC. There is actual data on this, and I think it’s important to always keep this in mind, even though it sometimes feels like the paper market completely dominates the physical market.
-In addition, there’s a load of valuable data, quite nicely presented in #TheProspectforGold
If you want to know more about the history of how physical and paper gold interact, you must buy BOTH of these books. The books complement each other for information on places like the #MiddleEast and #India . I am one of those people that thinks the physical market is making a strong comeback. These books provide great insight for how the physical gold market dominance transitioned towards paper gold dominance in #the1970s and #the1980s (if you think of them as being in a dance towards setting the price). Perhaps we are heading back towards the importance of the physical market...
Lastly, some fantastic quotes directly from my 1981 copy of #TheNewWorldofGold :
“Stalin preferred to husband his gold reserves as the ultimate war chest. And he took any opportunity to top it up. He secured a handsome bonus, for example, in 1937 when he accepted the bulk of Spain’s gold reserves as security for payment for arms and aircraft during the Spanish Civil War. At least 500 tons of gold, then worth $560 million, were secretly shipped from Madrid to Moscow. At a banquet in the Kremlin to celebrate the arrival, Stalin reported to have said “The Spaniards will never see their gold again.” They never have.”
“The fading of Dawson City reflected the overall decline of gold mining in Canada for thirty years after the end of the World War II. Once gold was the backbone of the Canadian mining industry. But, from a proud peak year in 1941 when 146 gold mines wrested 172 tons from the ground to help Canada pay for urgently needed war supplies, production slowly diminished until, by 1978, only fourteen mines remained yielding scarcely 50 tons. True, Canada held onto third place in the world production league table but, with output only seven percent of South Africa’s, she was hardly a formidable challenger. Interest in gold was so slight that one mining executive ventured, “I reckon you could have bought the entire Canadian gold-mining industry for $15 million in the early 1970s."
And one valuable quote directly from my 1987 copy of #TheProspectforGold:
“ 'The profitability of gold mining over the past five years has been a major factor in persuading mining companies to increase their exposure to the metal,’ observed Jim Fisher of Brook Hunt & Associates, the London mining consultants. ‘For each year since 1979, over ninety per cent of gold production in the Western world has shown an operating profit. No other metal has come anywhere near this record in recent years.’ While prices of such base metals as #copper and #zinc are down in real terms by two-thirds since 1970, the gold price, in real terms, has more than tripled.
The consequent shift in the energies of mining companies is understandable, but quite remarkable in scale. Prior to 1968, while the gold price was fixed at $35, exploration for new gold deposits outside South Africa was negligible. Even in 1975, after the price had first risen close to $200 an ounce, gold commanded barely ten per cent of exploration budgets. Today it is often eighty per cent or more. In #Australia alone, exploration expenditure soared from A$30 million in 1980 to over A$200 million in 1986. Overall, close to US$1 billion is now being invested annually in the search for gold, triple the amount in 1980."
There are many more factual nuggets like these in #TimothyGreen ’s books that I haven’t found anywhere else. I emphasize that #TheNewWorldofGold is my #1 book on #gold (many great parts of the book I haven’t commented on). I own and read a lot of books on #gold . #TheProspectforGold is a close 2nd. An excellent read on its own. But I think these 2 books go quite well together. They are really fun to read.
If you like these, I would then recommend looking into all of #TimothyGreen ’s other books, written before and after these 2 two (like the original #TheWorldofGold )
@MiningBookGuywarning: pushing out another big post on a #miningbooks recommendation in a couple minutes. the one i referenced to @90bigpicture last night for anyone who was around. sorry in advance for this particular timing. but i'm traveling soon and would rather get it out right now than later this evening or tomorrow. on the bright side, i'm really, really recommending this one to everybody on #ceochat :) will post in a couple minutes...
@MiningBookGuy@Robmcleod Re: Resource Estimation - thanks for the link! Unfortunately, I don't currently have 'technical' book recommendations. Only some beginning stage stuff that briefly touch on this subject, not at all on the same level as "Applied Mineral Inventory Estimation". i'd be interested to hear if anyone else has some good references for resource estimation. #miningbooks
@MiningBookGuyI noticed Gianni #Kovacevic has a "new book" coming out in Feb 2016 from the stockwatch link. A little disappointed when I realized it seems to be a wider release of "My Electrician Drives a Porsche?" http://www.amazon.com/My-Electrician-Drives-Porsche-Investing/dp/1626342512/ Great book (highly recommended), but read it earlier this year. #books#miningbooks
On the other hand, very cool that it looks like Tommy and CEO.CA will be on the back of every cover of this new edition! (at least I hope so)
"The themes discussed in this book are so powerful and valuable yet so few people follow them... a highly compelling read, especially for new investors."
- Tommy Humphreys founder, CEO.CA
@nicholaslepan@MiningBookGuy, if you are looking for a rare glimpse of a serious player, check out "Blythe Masters" by Pierre Jovanovic. It is in French but there maybe some translations, also it is unofficial as Blythe Masters ignored his requests for an interview. It is also tinted with anti-banker rants as well but it is a rare find and it covers the development of Credit Default Swaps in the wake of the Exon-Valdez catastrophe. Rare glimpse into the life of a banker who has shaped the world we live in. #miningbooks#books
@jhm'McClendon was swinging for the fences, like a true wildcatter. “When you look at the sweep of history in this industry,” McClendon later explained, “those who move first to lock in big new acreage positions when technology changes emerge as the winners.”' -- from The Frackers: The Outrageous Inside Story of the New Billionaire Wildcatters #miningbooks
@MiningBookGuy@teevee ended his last comment with "I hope this helps you understand how simple the gold market really is."
I think the world has been dominated by #PaperGold (and all other types of financialization) since the early 1980s. @teevee's anecdote is really a perfect example if how things were just prior to this shift, with #PhysicalGold still more important in #the1970s. If you REALLY want some excellent info here, I highly recommend you check out my personal "top gold book" recommendations (yes, these are my 2 favorites):
I tried my best to describe the contents in that article. But it does not do justice to the contents of the books. I was disappointed Jim Rickards never mentioned these books in his new book...but it's another reason these older books (and anything from the author #TimothyGreen) are so valuable.
To me, this is the best answer to why the gold market is NOT so simple.
@JamesKwantesReading Barren Lands, a 2001 book about Canada's original diamond rush, by Kevin Krajick. Great story from early in book: in late 1940s a geologist named Robert Folinsbee was mapping Lac de Gras area for Geological Survey of Canada. He noticed unique geology at Misery Point but misidentified the minerals. Almost a half-century later, he was a prof when he read about Chuck Fipke's diamond strike there. Dia Met was trading at $3 - he emptied bank accts and put it all into the stock #mbgtrends#miningbooks#diamonds
@JamesKwantesThat Arkansas state diamond park figures prominently in the #miningbooks Barren Lands, which I just finished. De Beers and other players were heavily in the hunt for diamonds there after its discovery, and Bill Clinton opened it up to development when he was the governor of Arkansas. But it turned out to be a bust (for a commercial diamond operation) and it reverted back to a tourist attraction #diamonds Fabulous book by the way, the story of Ekati - Canada's first diamond mine
@MiningBookGuy@anonymous - welcome to ceo.ca! you've got a ton of questions (which is great), too many to answer immediately, but there are definitely some good places to start:
-specific article link that @Vaughan is referring to, by @Newton: @newton/how-to-use-ceoca
-you can find a ton of helpful books in the #books room and #miningbooks room. click those links, and just scroll up!
-if you're mostly interested in 'daily trading', the #hotpick room is for you! you can check that out now and scroll up...it's mostly active in the middle of the week. maybe contact some people in there after observing for a bit.
-but if you're just 'generally' interested in learning about 'small cap stocks' (in particular 'junior mining stocks'), i'm trying to create a more focused environment for that in the #mbgtrends room that I run. Here's a link that tells you more about that: https://ceo.ca/popular?e540ca450f29
And click #mbgtrends and scroll up to see some discussion there. It's especially useful in the middle of the week when the #index (where you posted) is usually really busy.
-lastly, if you're especially interested in book ideas, I've created a bunch of videos on my youtube channel, and I'm working on a 'best #newbies books' list right now (btw, #newbies is also a good room to check out!). You can see what I've got on this list so far here: https://www.youtube.com/watch?v=Ts9WuG1E6HY&list=PLkRqHFC5fb4gcOTrG3qyG9di6UaEx-2nJ+
And I'm happy to discuss any of this stuff further in #mbgtrends. btw, this applies to anyone else new to ceo.ca and mining stocks as well! :)