In 2000, Blockbuster had a chance to buy Netflix.
The price?
About $50 million.
At the time, it probably didn’t look like much of an opportunity.
Blockbuster was a household name. It had thousands of stores and millions of customers.
Netflix was a small, struggling company mailing DVDs to people’s homes.
Why would Blockbuster need it?
So Blockbuster passed.
We all know what happened next.
Netflix survived, grew, and eventually transformed the entertainment industry.
Blockbuster filed for bankruptcy in 2010.
Now, it’s easy to look back and say Blockbuster obviously should have bought Netflix.
But that’s not really the lesson.
The lesson is that great investments don’t always look great at the time you have to make the decision.
Sometimes they’re surrounded by uncertainty.
Sometimes the market has just gone through a big decline.
And sometimes the thing everyone wants to own has already become too expensive.
I think there’s an important lesson here for gold investors.
I’m Lance James, and I’ve spent about 20 years working in the financial publishing business, and many of you may know me.
I’ve seen a lot of market cycles during that time.
I’ve also had the opportunity to work with a lot of financial analysts.
And I’ll tell you something:
I don’t say this lightly—I have a tremendous amount of confidence in Garrett Goggin’s work.
One of the things I appreciate most about Garrett is that he isn’t simply bullish on gold and then tells investors to buy anything with “Gold” in the name.
He looks at what you’re actually paying for.
That’s particularly important right now.
Gold has pulled back from its recent highs. Treasury yields have risen, making bonds more attractive to some investors, and that has put pressure on gold.
It’s tempting to look at that decline and think:
“Maybe the gold trade is over.”
But that’s not necessarily the right question.
The better question is:
Where is the value now?
In Garrett’s recent analysis, he points out that some of the major gold miners have actually become more expensive relative to their cash flows—even while gold has fallen.
That’s an important distinction.
A company can be producing enormous amounts of cash and still be a bad investment if you pay too much for it.
Wall Street Has a 1% Problem
Mining now represents just 1% of global equities – the lowest level in more than a century. So, what happens if even a small percentage of the trillions of dollars crowded into AI tech/growth stocks starts looking for a new home? Gold analyst Garrett Goggin says an enormous amount of money is about to chase a remarkably small number of top-quality gold mining companies. He’s already handed readers 1,383% in just over two years.
Go here to see the four miners Garrett is recommending.
And that’s why Garrett is looking beyond the obvious names.
He’s particularly interested in areas such as gold royalty companies and select junior miners that could become acquisition targets.
Royalty companies have a fundamentally different business model from traditional miners. They can participate in gold production without taking on many of the direct operating costs that miners face.
And with smaller gold companies, the opportunity can sometimes come from a major producer wanting to acquire a promising asset.
That’s where the research becomes critical.
Because you don’t want to buy any junior miner.
You want to identify the right one.
And you don’t want to buy a gold stock simply because gold has fallen.
You want to understand what you’re actually getting for the price you’re paying.
That’s one of the reasons I believe so strongly in Garrett’s approach.
We’re not trying to predict exactly what gold will do next week.
We’re trying to find companies where the potential value justifies the price.
Blockbuster had an opportunity to buy Netflix for $50 million.
They couldn’t see what Netflix could become.
We obviously can’t know which investment opportunities will become the next Netflix.
But we can do the work to identify companies that appear undervalued before everyone else sees the opportunity.
That’s exactly the kind of research Garrett and the Golden Portfolio team are doing right now.
Regards,
Lance James
Golden Portfolio
