In Santa Cruz, Argentina, Argentex Mining Corporation has recently drilled 32 exploratory holes as part of its mining operations. All the land it’s drilling on is completely owned by them. The fact they chose to highlight, and with good reason, is that the Savary vein has an average of 192.5 g/t of silver and 3.65 g/t of gold over 30 meters. If you’re new to investing in natural resources, a lot of this was probably gibberish or at least far too filled with jargon. And yet ‘dry facts’ like these are exactly what you need to look into if you’re investing.
HEI President Charles Reed Cagle is perhaps one of the most prolific investors of natural resources out there. He did not get where he was simply by jumping onto trends, or information he didn’t look into. If you wish to invest in natural resources, which is certainly not a bad desire as it’s an extremely profitable industry, you need to know just what this means. In this case, a simplification would mean very good things for people already investing in the company, somewhat good things for those trying to get in right now, and bad things if you’re looking to get into it down the line.
At the end of the day Argentex Mining Corporation have literally struck gold, and enough of it to be able to get quite a profit either mining it or allowing other companies to do so. If you invested in Argentex when they were still doing the drilling, you will see their stocks soar and make a lot of money. But if they hadn’t found enough gold, you would be suffering. If you are trying to get into Argentex now that this news is public, you have an extremely brief window. Their shares will surge upwards, but if you can buy some now you can make a moderate profit. If you decide to wait until their operations begin, you will lose money. A boom always goes up then down, and if you try to invest when it’s up high you will make no profit as the shares stabilize and the stocks plummet.
In the end, Argentex’s drilling shows us the value of timing. You could either have taken a gamble in its preliminary state, or jump onto the bandwagon now, but wait too long in this industry and you’ll be left cold.