BOB MORIARTY – Stop, Look, Listen, and Then

In this exclusive interview, Bob Moriarty the founder of 321gold and 321energy sits down with Maurice Jackson of Proven and Probable to address a number of  highly qualitative issuers that are selling at a deep, deep discount.  We will discover what precious metals Bob is purchasing presently and why!  Bob, will convey how one’s portfolio will benefit from understanding mass psychology.  Equally important, Bob shares the merits of understanding and having the discipline on knowing when to sell.

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Maurice Jackson:

Welcome to Proven and Probable, where we focus on metals, mining, and more. I’m your host, Maurice Jackson. Joining us for a conversation is Bob Moriarty, the Founder of 321gold and 321energy.com and the author of two of my personal favorite books, The Art of Peace, and Nobody Knows Anything. Mr. Moriarty, welcome to the show, sir.

Bob Moriarty:

Thank you. It’s good to speak with you.

Maurice Jackson:

Always an honor, sir. Bob, you’re one of the most coveted, respected names in the natural resource space, so it’s an honor to have you here sharing your insights. I would like to begin our conversation with Novo Resources, a company you and I both are shareholders in. Give us a little background on Novo Resources.

Bob Moriarty:

Well, let’s talk about what just last happened in the last couple of days. Novo released a press release, and they were talking about samples coming back from three of the trench samples. The really interesting thing is that one of them was 15 grams, one of them was 17 grams, and the other was actually above the pay zone, so it was 1.3 grams, and all of them were important for different reasons. Now, strange enough, the gold grade, overall is around 15 grams and the width identical to that of the Vits.

So, a 15-gram gold deposit, it’s certainly nothing to be ashamed of, if you got the lateral extent, and that absolutely appears to be the case. Markets go up, markets go down. You’ve read that in the book, and people say that when you’ve got a really great stock, it can only go up, and that’s just absolutely not the case. Rick Rule has said, “Every major discovery has at least one 50% decline,” and it’s, if you liked it at nine bucks, you have to love it at four bucks.

Maurice Jackson:

Bob, let me ask you this. Quality names usually have a sell-off this time of the year, from tax law selling. How much of a factor is the tax law selling, in this price movement?

Bob Moriarty:

None.

Maurice Jackson:

So this is strictly from the press release, basically?

Bob Moriarty:

Yeah, I think so. Yeah. The problem is, the first results were 67 grams, and that was so extraordinary, that anything less than that, everybody was disappointed, and said, “Okay, I don’t want to play anymore.” They’re forgetting that Witswatersrand produced two billions ounces of gold. Now, there are some specific issues with Western Australia. The gold is very nugget-y, which means it’s very difficult to manage it.

But, in this case, this gold that’s right at surface, they go down to 15,000 feet in South Africa, and that’s very expensive to do, and it’s very dangerous, and it’s very difficult. You can mine 15-gram material at surface, you’d make a lot of money.

Maurice Jackson:

Yeah, that’s certainly nothing to be ashamed about that, though. That, at the 15 grams, is quite commendable.

Bob Moriarty:

Sure.

Maurice Jackson:

When I saw the sell-off yesterday, I saw this as a great buying opportunity, and that’s exactly what I did, I bought more shares. Twofold question for you here. Are you buying Novo Resources at these prices? Why, or why not?

Bob Moriarty:

I’m not, but the reason I’m not is, because, I’ve got a very large position. It’s been my largest position for five years, and I don’t need to. Strange enough that somebody’s nervous about Novo. A really high potential, low risk stock would be to buy Kirkland Lake, because Kirkland Lake owns almost 30% of Novo, or has options on 30% of Novo.

Maurice Jackson:

That’s a very good point you make there. Can you share with us some other issuers that have your attention at the moment, and why?

Bob Moriarty:

Well, there’s one that’s my favorite energy stock, called Jericho Oil, and it’s simply got the best management that I know, in the junior research sector. It’s run by a guy who does everything he says he’s gonna do, and he set the company up, that, if the price of oil was going down, they would pick up other projects that other people walked away from, because they couldn’t afford them. If the price of oil was going up, he would start drilling.

So it’s one of those ideal circumstances. It doesn’t make any difference if the price of oil is $30 a barrel, or $60 a barrel, they keep moving forward. But it’s a company I’m really pleased to work with. I love the management. I’m gonna do a piece shortly. It’s just a great company.

Maurice Jackson:

I had an opportunity to meet with Jericho Oil, in the New Orleans Investment Conference, and you’re right. Great management and their use of optionality has been, just a great play at this time, and I’m looking forward to doing an interview with them as well, in the very near future, so, looking forward to also seeing what you have to say about them. Are there any other issuers that have your attention at the moment?

Bob Moriarty:

me take a look here. My number two, sold stock, behind Novo would have to be, Anaconda they’re up in Nova Scotia, and Newfoundland. They actually have an existing mine. I think they’re producing about 20,000 ounces a year. They have a mine and mill, but they’ve got a really exciting property in Nova Scotia, and something that I doubt very seriously, if any of your listeners have ever heard about, they’ve got a deposit called a saddle reef.

If you can imagine, 20 or 30 or 50 or 100 million years ago, the land being stretched, and then being compressed, so it looks like an accordion … that’s exactly what a saddle reef deposit is, and at the fold of the saddle, you’ve got a low pressure area. So if you’ve got fluid movement that contains gold, that’s where it accumulates. The beauty of a saddle reef deposit is, you can have 10 or 20 different pay zones, within the saddle reef.

Now, when these were discovered in Nova Scotia 150 years ago, everybody thought they were vein systems, because they look like vein systems, but they always existed in parallel. There were always two vein systems that ran at parallel, and some time during the 1950s through 1960s in Australia, somebody came up with this concept that said, “Hey, we should call that a saddle reef deposit.” They have a project called Goldboro, in Nova Scotia. It’s very high grade. It’s going to be very profitable to mine, and it’s a company that’s just been invisible.

Now, you and I were talking a few minutes ago. I think we’re at an inflection point, and I think that gold and silver are about to go a whole lot higher, where you’ve certainly seen it with Bitcoin crashing. Which I find very interesting, because that’s exactly what I predicted two weeks ago, but Bitcoin is crashing, and it certainly was extracting money from the resource market, and it looks to me as if the stock market is going into a runaway boom, which means it’s the next thing to crash.

I think there’s going to be a lot of money flow into the resource sector, and I think that resources will do very well in 2018.

Maurice Jackson:

Now, since we’re discussing precious metals, but I do wanna go back, just for a moment, back to Anaconda. One of my subscribers, Mr. Kevin Dougan, he shared with me … yesterday, actually, we were discussing Anaconda. They’re pretty creative in how they’re generating revenue. I think they were selling off their tailings off to a company in North Carolina, and making a handsome little profit from that. I don’t know if you’re aware of that, or not, the …

Bob Moriarty:

Yeah, actually I wasn’t aware, he was the one who introduced me to the company, and I thank him for that. The interesting to me is, there are multiple saddle reef deposits, in Nova Scotia, and you could look … everywhere on their website, they never mention the term, “saddle reef.” Now, there’s some things, you know, just because you learn it over time. When people talk about porphyry systems, there’s no such thing as a small porphyry. They’re low-grade deposits, but they can be in the billions of tons.

Saddle reef deposits, it’s very common to have 10 or 20 different zones of gold. So they can be very high grade, and they can be very inexpensive to mine underground. So, one of the things that I’ve talked to management about, it’s, they said, “Guys, you have to define saddle reef, and you have to explain this, so investors know what you’re talking about.”

Maurice Jackson:

Certainly. When you clarify the ambiguity, you certainly see the value proposition. You’ve mentioned precious metals. What are you buying right now?

Bob Moriarty:

Silver.

Maurice Jackson:

How about platinum? You and I were discussing platinum in the past, and you saw it as a good buying opportunity. How about now?

Bob Moriarty:

I did buy some platinum recently, but you don’t … so you compare it to the five different metals, you got platinum, palladium, silver, gold and rhodium. They rotate leadership. Platinum is nearly the highest, or the largest spread between the price of platinum, and the price of gold. In relative terms, platinum’s cheap, gold’s expensive. In relative terms, silver’s cheap, gold’s expensive. The difference between platinum and silver is, there’s not a lot of companies you can invest in, to benefit from the price of platinum. You’re pretty much stuck with the metal.

There’s a whole bunch of silver companies, and some really good silver companies, and I think, even though I would rather be buying platinum, metal itself … I think the silver companies will make the biggest moves.

Maurice Jackson:

One of those, I think, we highlighted last time, which was Metallic Minerals, and they’ve had some very, very nice results lately.

Bob Moriarty:

Oh, just absolute, extraordinary. I’ve been up there, to Keno Hill. That’s an area that was discovered over 110 years ago. It was a big, big, big silver area, and it all shut down around 1989, 1990, and Alexco went in there. Well, Alexco was founded by the people at Nova Gold, and Greg Johnson was part of that, and Greg took over another company, called Monster Mining, and changed the name. But they’re coming up with some absolutely extraordinary grades. They had 1.6 meters of 2,800 grams gold. They have surface samples … I’m sorry, that 2,800 gram of silver, they had surface samples up to 12 kilos of silver It has been a mine in the past, it will be a mine in the future, and it will go into production.

Maurice Jackson:

For our listeners, if you’re aware of the history of Metallic Minerals … as you alluded to, they were once Monster Mining, and it just shows you how important it is to have the right people running the ship here. Because these weren’t the results that we were seeing under the previous management, so kudos to Greg Johnson there, for a job well done, so far.

Bob Moriarty:

Yes.

Maurice Jackson:

Well, how about rhodium? This is one I like. Rhodium is one that you introduced to me over the summer, when you and I were in Japan, with a site visit with Irving Resources. Again, a proud sponsor and shareholder for that company, as well. Talk to us about rhodium.

Bob Moriarty:

Well, rhodium is really interesting, ’cause rhodium has pretty much doubled, in the last year. Rhodium and palladium have gone up the most. Rhodium, it used to be very difficult to buy. It’s a byproduct, it’s one of the six PGMs. It’s a byproduct of nickel and platinum mining. It’s very valuable, because it melts at a higher temperature, than either platinum, or palladium. So they use to coat sterling silver, and they use it in catalytic converters. But you could buy a Baird, one-ounce rhodium bars now, and that’s quite interesting. But the real benefit is the fact that it’s gone up so much.

Maurice Jackson:

And they’re very rare. I’ve been in precious metals for about 10 years now. I own rhodium, but again, as you mentioned, one-ounce bars are very hard to come by. Bob, last question for you here.

Bob Moriarty:

Sure.

Maurice Jackson:

What did I forget to ask?

Bob Moriarty:

I don’t think anything. I mean, we can always do another interview in the future.

Maurice Jackson:

Sounds great, but I want to share this, before we close. We’ve referenced your books, The Art of Peace, and Nobody Knows Anything. Ladies and gentlemen, if you’re looking for a great read, or a time-treasured Christmas gift for a loved one, do what I did. I purchased my three sons each a copy of both books, so when they get older, they get ahead of their peers. Bob, give us a brief narrative on both of these books, please.

Bob Moriarty:

Well, it’s interesting that you brought that up. One of the things that’s very important for investors, to realize is, what does a bubble look like, and how do you profit from a bubble, and how do you avoid losing money? I was a commodities broker in 1984, and I had a stack, a foot high, of people who had invested into silver in 1979 and 1980, and every single one of them had increased their investment, five to tenfold, and every single one of them lost money, because they wouldn’t sell.

I’ve got a whole chapter in the book, and many people have told me, it’s the best chapter in the book, about when to sell. When you buy something, you have to have a plan for selling. There are people who are up 18,000% on Bitcoin, and they refuse to sell. Well, Bitcoin has gone down. It’s gone down about 45% in the last week. People had a tremendous opportunity to make money, and they didn’t do that. But you need to understand human behavior, you need to understand bubbles, you need to understand mob psychology, you need to understand when to sell.

You need to understand, there’s no such thing as a guru, there is no such thing as an expert, but then, there are a whole bunch of fools.

Maurice Jackson:

Very well said! And for our listeners, you can order your copy under our Education tab, on proveandprobable.com. We do not receive any financial consideration for selling or advertising these must have books for your library. But we certainly have benefited financially, from applying the axioms in the books.

For more information on Bob Moriarty and his work, please visit: www.321gold.com, and www.321energy.com, and last but not least, please visit our website, www.provenandprobable.com, where we interview the most respected names in the natural resource space. You may reach us at contact@provenandprobable.com.

Bob Moriarty, the founder of 321gold, and 321energy. Thank you for joining us today on Proven And Probable.

Proven & Probable

Maurice Jackson

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