Revealed: #1 Gold Play Of 2023 (Commodity Supercycles, Amy Gamper)

Amy Gamper is out with a new stock presentation for the Stansberry Research newsletter Commodity Supercycles.

She claims to know the #1 gold play of 2023.

However, Amy wants you to buy her newsletter to learn the ticker symbol.

Well I have good news!

She left enough clues in the presentation to figure out the name of the stock.

I reveal it below along with some information so you can determine if it's worth it or not.

Let's get started!

What Is The #1 Gold Play For 2023?

Stansberry Research is relaunching a stock presentation hyping up their #1 gold play for 2023.

This is for their Commodity Supercycles newsletter which is now run by Amy Gamper.

Let's take a look at this presentation and see if there's enough clues to figure out the stock:

$5 Stock Is The #1 Way To Get In Gold

The presentation starts out like all of these stock pitches do.. by hyping up an investment idea.

In this case Amy Gamper claims she knows the #1 way to get rich with gold for 2023.

She also gives us our first hint - that the stock will cost $5.

Beyond this Amy hypes up gold as an investment in the current market.

For example, she shows various charts of gold vs. the S&P 500, Dow and NASDAQ:

Additionally, Amy claims gold is going to go over $2000 because of current market conditions and inflation.

Amy shows various times when gold has more than tripled in price:

It is true that gold has jumped in price during these times and it's performed pretty well over the last 20 years.

At times it's performed better than the market especially from 2004 to 2014.

In the last 20 years gold has gained around 9% per year (the market is beating it slightly).

And over the last 12 months gold has held its value the best:

Gold has been around and loved for thousands of years and that's unlikely to change anytime soon.

So investing in gold is something that usually works out in the long run.

You'll Be Investing In Royalties

At this point Amy starts to describe the investment you'll be making.

She's not recommending that you buy physical gold.

Instead she's recommending that you buy a company involved in gold royalties.

Amy explains how royalties were started by a guy named Pierre Lassonde.

Essentially a gold royalty company invests in different gold mining projects and get a stake in what ever is mined.

This is a good business because there's essentially no risk on the gold royalty company.

They don't own the machinery or have to buy new equipment, they're not paying for labor, or anything like that.

They're simply funding parts of mining operations and get a cut of whatever comes out of the ground.

However, Pierre Lassonde's royalty company and others like it have been around for many years.

So the odds of getting massive gains are long over according to Amy (they're already multi-billion dollar companies).

Amy is recommending a much smaller company with a lot of growth potential.

Amy Is Recommending Sandstorm Gold

At this point in the presentation Amy starts talking about the company she's recommending and dropping hints about it.

Amy believes that because larger royalty companies are so big they can no longer focus on smaller projects.

They only invest in larger, mega deals.

This leaves many smaller projects to be gobbled up by the royalty company Amy wants you to invest in.

And this company is Sandstorm Gold.

I know this because this pitch has been running for years and in the past was the #1 gold play for 2019, #1 gold play for 2022, etc.

So is this a good investment?

I'll answer that in the next section.

Is Sandstorm A Good Investment?

At this point you're probably wondering if Sandstorm is worth investing in.

I'm not going to answer that directly and that's something you need to decide for yourself.

However, I'll give you some information on the company so you can decide if it's right for you.

High Optimism, Mediocre Results

Sandstorm is a company that a lot of people like but has  underperformed the last 5 years.

There's been some setbacks in some of the projects they're invested in and the stock hasn't grown as fast as many competitors. 

For example the biggest and most well known gold royalty company, Franco Nevada, has grown 94% over the last 5 years:

In the same period Sandstorm has only gained 16%.

The market has returned 46% in this time.. so just putting your money in an index fund would have been smarter.

Gold Bear Market Would Be Bad

Sandstorm has been making moves to expand their business and grow into the future.

They recently bought Nomad Royalty for $590 million.

This move ensures they'll grow into the future and that their growth will be much steadier.

However, they took on some debt to make the deal.

So if gold were to drop significantly in price this would slow the production of their mines and they'd make less money on their operations.

This isn't a huge concern but in an environment of crashing gold prices and high interest it could effect the company.

Progress On Their Hod Maden Project

A major hang up for Sandstorm has been an investment in Turkey called Hod Maden Project.

Sandstorm owned 30% of this mining project and this operation had been stalled the last few years.

I'm not going to bore you with all the details but things seem to be moving in a positive direction.

So if this project finally gets off the ground this will help generate more revenue for Sandstorm.

Analysts Agree The Stock Is Priced To Buy

Even though there's some red flags and concerns most experts believe the stock is a buy at its current priced (around $5 to $6)

According to several experts the price target for this stock is around $8.77 and goes as high as $12.50:

Overall Chaikin gives this stock a bearish rating but does show expert consensus is very bullish on this stock:

Chaikin's reasoning for the strong expert rating is as following:

So experts seem to like the stock at the current price.

They must like the recent deals and movements of the mining projects they're invested in.

Conclusion

So that's the end of my overview of "The #1 Gold Play Of 2023."

In reality this has been Commodity Supercycles "#1 Gold Play" for several years now.

This presentation has been running since at least 2019.

Had you invested in Sandstorm back in 2019 you'd be about breakeven right now.

Had you invested in the most well known gold royalty company, Franco Nevada, you would have doubled your money.

The idea for Sandstorm is there's much more room to grow so you can cash in on bigger gains.

But so far those gains haven't happened.

Franco Nevada is still a much better investment.

Will this be true in 10 years? 

I guess we'll see.

Sandstorm is making moves that are good for long term growth.

They're acquiring companies and some of their mining investments are starting to get moving.

They do have some debt now and that debt could be a problem if gold prices crash and interest rates stay high.

But many experts are bullish on this stock despite the concerns.

Are you thinking about investing in Sandstorm?

Let me know below what you think!