Hard-core investors found real resource projects

When the market bears are growling, contemplating a trip to a showcase of the companies currently in the grip of that punishment can seem daunting, but resource experts say now is exactly the time hard-core investors need to be out talking to management, hearing their stories and figuring out which companies will be on top when the good times come.

The Gold Report spoke to some of the experts at the recent Metals Forum and Cambridge House Vancouver Resource Investment conferences, who shared some of the nuggets they gleaned from the podium and exhibit hall.

Frank Holmes, CEO and chief investment officer at U.S. Global Investors, gave a talk at the Cambridge House conference titled "Fear Trade Sees Gold as a Store of Value When Interest Rates Are Negative."

Holmes always focuses on the global supply-and-demand equation whether it is traveling to better understand the odds and implications of a possible strike in Chile or changes in what he calls the "love trade" based on buying gold for celebrations in India and China. "This is a classic bottom-of-the-trough year," he said. He pointed to companies slashing exploration costs, apathetic investors, and the bottom-line impact of "draconian" regulations for raising capital.

"The cost of being a public company is almost prohibitive," he said.

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The Gold Report, by Streetwise Reports, features the leading investment coverage of gold, silver, platinum, and other precious & base metals.