It’s a Scam: Don’t Fall For It – Live with Warren Irwin

Published on
August 14th, 2020
Duration
54 minutes

The Vicissitudes of Markets – Live with Luke Gromen


It’s a Scam: Don’t Fall For It – Live with Warren Irwin

Live ·
Featuring Warren Irwin

Published on: August 14th, 2020 • Duration: 54 minutes

It’s no secret that as of late, precious metals have become the talk of the town. Gold recently blasted through its all time high, while silver continues its seemingly unstoppable run. With so much excitement surrounding the two metals, however, one must exercise extreme caution and discipline when choosing a way to gain exposure since not all assets are cut from the same cloth --particularly when it comes to the mining sector. On this segment of Real Vision Live, we bring you an individual that is well versed on the matter as he managed to turn $250k into several million by investing in a mining company that turned out to be a scam. Ultimately, he sold and immediately shorted the stock, which in turn allowed him to benefit from both the rise and fall. Warren Irwin, President and CIO at Rosseau Asset Management, will be joining Max Wiethe to discuss the nature of scams in the mining space and how to go about choosing the right companies to take part in what many believe could be the beginning of a bull market in precious metals. List of things to watch out for when investing in junior miners: https://rvtv.io/31oGWT9

Comments

Transcript

  • DS
    Dimitri S.
    20 September 2020 @ 12:24
    Amazing interview! Thanks Max for asking the questions and thank you Irwin for sharing from your many years of experience navigating treacherous waters. That was helpful. Hope to see you again on RV very soon!
  • AF
    Andre F.
    18 August 2020 @ 00:22
    In my opinion, this particular interview did not go so well. Mr Irwin didn't seem as prepared as he could have been, nor did Max. I came away with an "essence" more so than "hard particulars" with regard to the stated topic: avoiding getting you a** handed to you in the junior mining sector. (Having said that, I'll certainly check back for Mr. Irwin's list.) Questions that could have been asked but weren't: 1.) What constitutes a world class gold or metals discovery? 2.) How does one go about researching which companies are just reincarnated scammers showing up for the Nth cycle with the same shitty asset and/or same scamming management. 3.)
    • AF
      Andre F.
      18 August 2020 @ 00:26
      Note: Incomplete comment because I decided to cancel the comment part way through typing, but the damn thing posted anyway.
    • MW
      Max W. | Real Vision
      18 August 2020 @ 01:16
      Hi Andre, Thanks for the feedback, always looking to improve. I can assure you both Warren and I did our homework. We spoke extensively beforehand and he went so far as to prepare notes, which not everyone does. This interview was mostly billed as trying to avoid mistakes and scams which I think it delivered on. To try and answer your questions... 1) He basically said it depends because you are never going to get exactly what you want. The main takeaway on that front for me was he likes potential takeover opportunities for majors. I’d say looking at the profile of different purchases by majors historically would be a good place to start 2) Corporate communications, conferences, online chat rooms, financial reports, were all mentioned along with straight up knowing the right guys. The amount of the issue that comes down to the last point about knowing the right guys is massive. It might seem as though that doesn’t help your average investor but I’d argue the takeaway should be about how you are in fact disadvantaged in niche sectors where this kind of behavior is common. That doesn’t mean avoid the sector but knowing that others are privileged to info you don’t have can be helpful. With all that being said I’m interviewing Adam Rozencwajg on Friday. He’s another natural resources investor who along with his partner Leigh ran the $3 Billion Chilton Natural Resources Fund. Your first question is the entire focus of the interview. I'll make sure to get a solid answer.
    • CY
      Chin Y.
      31 August 2020 @ 04:51
      This is to Max regarding " It might seem as though that doesn’t help your average investor but I’d argue the takeaway should be about how you are in fact disadvantaged in niche sectors where this kind of behavior is common. That doesn’t mean avoid the sector but knowing that others are privileged to info you don’t have can be helpful." - Yeah that was my takeaway. As an average Joe I won't have the edge that is needed to succeed here consistently.
  • DD
    Dmitry D.
    27 August 2020 @ 10:05
    This was awesome! Will watch again as soon as I can. Really hope to see Warren back at some point
  • JL
    Jinny L.
    18 August 2020 @ 15:29
    anyway to get specific names of outright crooks, charlatans, etc which have committed fraud in the past? i figure in the bull market these people will resurface and try to deceive investors again.
    • WI
      Warren I. | Contributor
      20 August 2020 @ 22:29
      I can name a bunch of them, but I would rather not spend my days getting sued. Keep your eyes open for many of the things I pointed out and you should be able to recognize them before too long. My lessons cost me a lot of money, so use them as a starting point. Good luck!
    • JL
      Jinny L.
      26 August 2020 @ 14:13
      thank you so much as i am sure i will make similar mistakes. your interview was and is a gold mine with pun intended.
  • NS
    Nikolaus S.
    26 August 2020 @ 08:27
    Hi all, please find here the transactions history on CGP FYI. https://ceo.ca/api/sedi?insider=&symbol=CGP&date=&transaction=&amount=&undefined[company_symbol]=CGP
  • DS
    David S.
    25 August 2020 @ 20:16
    Great interview!
  • JS
    J S.
    24 August 2020 @ 15:43
    Please invite him more often. Would like to hear more from his POV on the current cycle and current gold supply/demand. Thanks.
  • NL
    Nikola L.
    22 August 2020 @ 04:22
    good stuff. More of entertainment for me though as I play in the same market segment and share same views so there wasn't much to learn. It kind of gave me bit of assurance that I am on the right track in terms of how I evaluate juniors and that is it the right place to be for small investor. I too see Cu and Ni as best picks of the base metals. Nickel more of a short - medium term and Copper as longer term investment. Targeting juniors who explore for Cu/Au deposits is my main strategy but also follow pure gold stories and silver and platinum. Mid tier gold miners in Oz are now expensive but if we see price of gold corrects another $100 markets always panics and punishes these miners to a point where they trade as if price of gold fell $500.
  • dw
    douglas w.
    20 August 2020 @ 00:10
    Warren is an insanely successful investor, if people new what his fund has returned there minds would be blown. I believe in 2016 his fund was the best performing fund in the world. For him to be this down to earth is awesome. Nice gems of insight into the miners and also his views about the psychology in bull and bear trends. Please have him back to speak about Uranium, Copper and Nickel, in the future. Max thanks for bringing him on.
    • MW
      Max W. | Real Vision
      20 August 2020 @ 00:56
      He’s your favorite band’s favorite band. The Velvet Underground of hedge funds.
  • VS
    Valtteri S.
    18 August 2020 @ 19:31
    Max, could you address the question asked about novagold? You seemed to know about it and the name is very familiar here at RealVision.
    • MW
      Max W. | Real Vision
      19 August 2020 @ 19:57
      Sorry, I don’t have much to add here other than to say the short seller report and NovaGold’s response can be found easily on Google.
  • AM
    A M.
    19 August 2020 @ 17:48
    I'll never forget the pure unadulterated exquisite joy of holding Aurelian Resources at 50cents and riding it to $30 - it was like having an ATM in the back garden for a few fleeting months. Then I lost a big junk after the election of a left wing politician! Kinross overpaid and couldnt get a deal with the Ecuadorian government. Then Lucas Lundin stepped up to the plate. Lundin Gold has been a good performer this last 18 months, but providing nothing like that joyous moment when Aurelian hit 189m @ 24grams per ton!!
  • LA
    Linda A.
    19 August 2020 @ 17:30
    Pleasantly surprised with this interview! Thank u Warren for making this so entertaining & educational.
  • MW
    Max W. | Real Vision
    17 August 2020 @ 19:18
    You can find Warren’s article on his experience making money trading mining fraud Bre-X both long and short here: https://ceo.ca/@WarrenIrwin/2016s-top-hedge-fund-manager-relives-historys-greatest-gold-scam
    • MW
      Max W. | Real Vision
      17 August 2020 @ 19:48
      We are also going to post Warren's full list of 35 things to watch out for when investing in junior gold miners. He is updating his list for us. We will post a link in the description as soon as it is ready.
    • MW
      Max W. | Real Vision
      19 August 2020 @ 16:41
      Here is the link to Warren's list of 56 things to watch out for https://rvtv.io/2FDCkA6
  • MW
    Max W. | Real Vision
    19 August 2020 @ 16:41
    Here is the link to Warren's list of 56 things to watch out for https://rvtv.io/2FDCkA6
  • BP
    Bryce P.
    19 August 2020 @ 07:06
    Fantastic interview. Enjoyed Warren's perspectives. Please have him back more often.
  • SB
    Sean B.
    18 August 2020 @ 23:23
    That was great.
  • RK
    Roger K.
    18 August 2020 @ 20:57
    Junior miners are still private companies. How a retail guys would buy their shares ???
    • MW
      Max W. | Real Vision
      18 August 2020 @ 22:05
      I'm afraid that isn't true. There are certainly private mining companies in the world and many publicly traded companies were private at one point but there are tons of publicly traded juniors. $GDXJ is an ETF devoted to junior miners with 79 current holdings. ETF names are not perfect so I'd be skeptical that all 79 could be classified as "junior" miners. There are many more juniors which are not in the ETF. https://www.vaneck.com/etf/equity/gdxj/holdings/
  • FF
    Frederic F.
    18 August 2020 @ 16:00
    Wow, bookmark this interview and come back at the beginning and end of every precious metals cycle.
  • GW
    Geoff W.
    18 August 2020 @ 12:27
    So much good advice, equally applicable to junior oil exploration companies.
  • DH
    David H.
    18 August 2020 @ 06:59
    Since apparently not all agree here, I found this to be a fun and useful reminder as to the realities of the culture of these micro cap explorers, dreamers, promoters, and adventurers. His job sounds like a ton of fun and it seems his level of involvement in the community is invaluable. That is, don’t do it at home unless you are going to get in a deep as he.
  • BE
    Benjamin E.
    18 August 2020 @ 04:32
    Fantastic interview. Much appreciated perspective as someone who just went out on the risk curve into junior miners.
  • GH
    Gloria H.
    17 August 2020 @ 23:05
    Excellent talk. This alone was worth the cost of a subscription, particularly the discussion on the end of the bull run and what to watch for re the juniors. Kudos.
    • MW
      Max W. | Real Vision
      17 August 2020 @ 23:06
      Thanks Gloria!
  • CO
    Craig O.
    17 August 2020 @ 22:15
    Repect for not talking his book or trying to pump the stuff he want's to "weed" out of his garden.