SAM Gold
What is the Gold strategy?
The Gold strategy offered by Stansberry Asset Management, LLC (“SAM”) is designed for clients who want to allocate more of their net worth to precious metals (primarily gold) and related investments.
SAM believes precious metals will continue to be a superior store of value to the U.S. dollar and other fiat currencies—particularly in periods of high inflation—just as they have for thousands of years.
Zephyr PSN Top Guns Award
Quarter 3 2025
Our Four-Pronged Approach
The Gold strategy is diversified across asset classes, market capitalizations, and business structures. We conduct rigorous due diligence on every position held in the strategy.
We actively manage this strategy to capitalize on investments that we believe offer superior reward-to-risk ratios.
Physical Precious Metals
SAM believes that owning a significant amount of physical gold and other precious metals is an important foundation to any precious metals investment strategy.
Major Producers
SAM focuses on owning well-run, established precious metal producers that have consistently achieved industry leading returns on investment.
Royalty Companies
Royalty and streaming companies provide capital to miners in exchange for a percentage of their production. Their capital efficient business models have resulted in high profit margins and outstanding returns over time.
Emerging Producers
Often times the most attractive precious metal investment opportunities are valuable not for the amount of gold that they currently produce but for the under appreciated amount of “pounds int he ground” that they own and plan to produce for years and decades into the future. These “junior miners” can trade at a fraction of the value of their owned gold resources and proven reserves.
Understanding Physical Precious Metals in Our Gold Investment Strategy
At Stansberry Asset Management, our Gold Strategy is designed to provide exposure to the value and resilience of physical precious metals—primarily gold—without the complexity of owning and storing the metal directly.
Rather than holding physical gold bars or coins, the strategy includes positions in companies and investment vehicles that own or have claims to physical gold. This approach seeks to capture the same core benefits—store of value, crisis protection, and diversification—while maintaining greater liquidity and ease of management.
Why Include Exposure to Physical Precious Metals in the Gold Strategy?
- Store of Value: They retain purchasing power over time, especially during inflation or currency devaluation.
- Reduced Counterparty Risk: While not holding physical metal directly, our holdings emphasize companies and structures backed by real, tangible assets.
- Portfolio Diversification: Their price movements often differ from equities and bonds, helping reduce overall portfolio volatility.
- Crisis Hedge: In times of economic or geopolitical uncertainty, physical metals are considered “safe haven” assets.
We Invest With the Major Producers of Precious Metals
In a Gold Investment Strategy, major producers of precious metals refer to large, well-established mining companies that extract and sell gold, silver, and other precious metals at a commercial scale. These companies are publicly traded and play a vital role in a diversified gold portfolio, offering investors leverage to rising gold prices, operational efficiency, and sometimes dividend income.
Why Include Major Producers in a Gold Strategy?
Major producers—large, well-established mining companies—play a vital role in a comprehensive gold investment strategy. While physical gold offers wealth preservation, major producers provide investors with growth potential, income opportunities, and operational leverage to rising gold prices.
Leverage to Gold Prices: Major producers benefit from economies of scale. As gold prices rise, their profit margins often expand faster than the price of gold itself, making them an attractive way to amplify exposure to precious metals.
Cash Flow & Dividends: Many major producers generate strong cash flow and return capital to shareholders through dividends. This makes them an appealing option for income-seeking investors.
Operational Scale & Stability: These companies typically operate multiple mines in stable jurisdictions, providing a more diversified and less volatile investment than smaller, single-asset miners. Their scale also allows for more efficient operations and access to capital.
Geographic Diversification: Global operations across North America, South America, Africa, and Australia reduce region-specific risk and create exposure to varying regulatory and economic environments.
Strategic Flexibility: Large producers often pursue growth through acquisitions, joint ventures, and exploration, giving investors exposure to future resource development without the direct risks of early-stage mining investments.
Enhancing Your Portfolio with Royalty & Streaming Companies
Royalty and streaming companies offer a unique and highly efficient way to gain exposure to the precious metals sector—without the operational risks of traditional mining companies.
Capital-Efficient Business Model: These companies provide upfront capital to mining operators in exchange for either:
- A royalty: a percentage of future revenue or metal production.
- A stream: the right to purchase a portion of the mine’s production at a fixed, discounted price.
Because they don’t own or operate the mines, royalty companies avoid the high costs and risks associated with mining operations—such as labor disputes, cost overruns, and regulatory issues.
High Profit Margins & Consistent Returns: Thanks to their low overhead and steady cash flows, royalty and streaming companies tend to achieve strong profit margins, even during periods of gold price volatility. Historically, many have delivered outstanding long-term returns to shareholders.
Built-in Diversification: One royalty company may be tied to dozens of mining projects across multiple regions and operators, providing broad exposure to the gold sector with a single investment.
Downside Protection: Because they aren’t directly responsible for mining operations, these companies face less risk from rising costs or project delays. And when commodity prices decline, their fixed-cost contracts help cushion the impact.
Upside Participation: If the underlying mines expand production or discover new reserves, royalty companies often benefit—without investing additional capital.
Royalty and streaming companies offer a compelling combination of growth potential, downside protection, and capital efficiency—making them a valuable component of a well-rounded gold investment strategy.
Our Gold Investment Strategy Includes Emerging Producers of Precious Metals
Emerging producers are junior or mid-tier mining companies that are transitioning from exploration and development into active gold production. These companies often own high-potential assets with significant untapped reserves, and they represent a dynamic component of a gold investment strategy.
High Growth Potential: Emerging producers are in a critical phase of value creation. As they ramp up production and prove out reserves, their valuations can rise significantly—offering substantial upside for early investors.
Leverage to Gold Prices: Smaller producers often experience greater sensitivity to rising gold prices, as even modest price increases can have a strong impact on their margins and cash flow.
Strategic Acquisition Targets: Larger mining companies frequently acquire successful emerging producers to boost their own production pipelines, potentially leading to premium buyouts for shareholders.
Operational Momentum: As they scale production and improve efficiency, emerging producers can move quickly up the value chain—transitioning into mid-tier status with strong investor returns.
In a well-constructed gold investment strategy, emerging producers offer asymmetric return potential—balancing the stability of major producers and physical metals with the opportunity for outsized growth from new production and discoveries.
Frequently Asked Questions: Gold Investment Strategy
Why should I consider investing in gold?
Gold has historically acted as a hedge against inflation, currency devaluation, and economic uncertainty. It’s considered a store of value and can add diversification to an investment portfolio.
What are the main ways to invest in gold?
Gold can be invested in through:
- Physical bullion (coins or bars)
- Gold ETFs (exchange-traded funds)
- Mining stocks
- Gold futures and options
- Royalty and streaming companies
What is the difference between owning physical gold and gold-related equities?
Physical gold provides direct exposure to the metal and is not tied to company performance. Gold equities (like miners or royalty companies) may offer leverage to gold prices but could come with potential market risks.
Is gold a good investment during inflation?
Historically, gold tends to perform well during periods of high inflation or when fiat currencies are losing purchasing power, making it a popular inflation hedge.
How much of my portfolio should be allocated to gold?
The ideal allocation depends on your financial goals, risk tolerance, and market outlook. Many advisors recommend 5–10% of a diversified portfolio, though this can vary.
What are gold royalty or streaming companies?
These companies finance mining operations in exchange for a percentage of future production or revenue. They typically have lower operational risks and benefit from rising gold prices.
How does gold compare to other commodities like silver or oil?
Gold is less industrially driven than silver or oil, meaning its price is more influenced by investor sentiment, central bank activity, and monetary policy than by industrial demand.
Can gold generate income?
Physical gold does not generate income. However, some gold-related equities may pay dividends, and strategic trading within a gold-focused investment strategy can produce returns.
How liquid are gold investments?
Many Gold ETFs and mining stocks are highly liquid. Physical gold is also liquid but may involve a bid/ask spread and costs related to verification and transfer.
How is gold taxed in the U.S.?
Physical gold and some ETFs are considered collectibles and may be subject to a higher long-term capital gains rate of up to 28%. Gold mining stocks are generally taxed like other equities, based on your holding period. Many gold companies are based outside the U.S., so dividends may face foreign withholding. Some royalty companies may also be considered Passive Foreign Investment Companies (PFICs), which carry additional tax and reporting rules. Consult a tax advisor to understand how these rules may apply to you.
Is now a good time to invest in gold?
That depends on your financial goals and market outlook. Gold tends to do well during periods of market uncertainty, rising inflation, and weakening currencies. A long-term perspective is key.