Hi guys, Shaun Fox here. In this video, we're going to be talking about investing in mining.
Well why to invest in mining, how to invest in mining and the things to look out for.
Shaun, let's start right from the beginning. I'm an avid investor but I'm not really sure
how to invest in mining. What's the best way to go about it?
Number one, as with anything, research. Start doing your research whether that's Google,
talking to people etc. So always start with research out there. Nobody's an expert at
anything unless you already work in the field which that's a really good way to invest but
if you don't know start looking.
And what am I Googling here? Am I looking good mining investment opportunities? What
sort of stuff am I typing?
Start the other way. Find failed mining investments. Start with other people's mistakes and then
move forward. That way you're well prepared as you go. And look and use that for any type
of research for investing. Start with the worst case scenarios.
All right good. So let's say I've done some research and I'm finding out a little bit
about the industry, how it works some of the failures along the way. What are some of the
forms that I can actually do to invest in mining?
Look, the very best one is go buy yourself a mine. So if you've got the money go buy
yourself and mine. Coming down from there, what you want to do is look at the different
levels of investment. So number one, buy the asset. That's the best way of investing that's
what we do ourselves. Number two, invest in somebody else's mine, somebody that you actually
know. So if you aren't interested in investing in mining, do your research. Are you in or
around mining areas, mining communities. Go over those areas, there's nothing stopping
you getting on a plane spending a weekend. If you're serious about investing in mining,
go there go talk to some miners. Go talk to you know people around, go to the local pub
in a mining community, you're going to hear all sorts of places to invest. Again always,
seek advice from professionals once you find something you want to invest in. Another way
of investing is on the share market. You can go to the stock market investment.
Right, invest in a mining company.
Yeah absolutely and that's where that research comes back to. What would the failed investment,
you'll find a lot of the failed mining investments were big listings on the ASX so you need to
be wary of where a mine is up to in their part of their progress and so failed ones
online are going to show you oh the similarities of where you're investing at what point. This
is why I like to directly invest into mines or any type of investment because you know
exactly where it's up to. You can talk to the guy that's running it he says here's where
we're up to.
So it sounds interesting to me. I've never thought of getting on a plane and going visiting
someone. You just send them an email, give them a call. How does that work?
No, just get to the area. Go to the local community. Like find mines that may be trying
to raise money, talk to whoever it is that's on the other end of that phone and book a
time to go out there but also just go local area, you'll find in mining everybody's looking
for money all of the time.
Right so there's sort of an active appetite and your job is to tap into that and a great
way to do that is to visit that local community.
Yeah look, if you're becoming a professional investor and you have the time and you really
want to make a solid investment, you'll find that directly investing into something, you're
going to get more equity, more interest, more money, more control within there. If you're
more of an armchair investor and you don't have the time to do that, go back to that
research get an excel spreadsheet, find all of the failed ones, and go well at this point
why did that mind fail and how much were their shares at this price et cetera and look at
the similarities into what you're investing in. You'll then be able to correlate all of
that information to go well those mining shares don't work for me, these ones are a later
stage that's where we've got the highest chance of success.
All right good. Let's go for a quick story from your own experience. I know there's different
kinds of mining from gold mining to sand mining. Can you give me a sense of a bit of an anecdote
from your own experience and something that's worked well for you?
Well look, buying obviously buying a mine is probably the best way. I spent about five
years in the acquisition uh of a mine. Took me two and a half years to convince the owner
to sell it to me the way that I wanted it to and then I kept him in the process as well
within there and then we raised a lot of money from investors to get that mind going but
my journey with mining so far surprisingly finds that the best type of resource to mine
you'd think it'd be gold.
Right because it's the most valuable.
Yeah it turns out it's sand.
Sand?
Sand by miles. So sand is the second most in demand commodity in the world after water
but it's the world's most depleting asset. We use it for building our roads, our houses,
we use the silica in there for building our microchips glasses cosmetics.
So that's been a successful investment for you?
Absolutely.
And can people actually invest in something like that? I guess they have to give you a
call and go to the website and find out more.
Yeah absolutely you can invest directly into that with plugging myself a little bit more
here but um you can like we we do investments in mines all the time which is fractional
for people to get involved in.
Thank you very much. For those of you who'd like to find out more about this investment
opportunity and many others, please join us online at shaunfox.net or snap up a copy of
Shaun's new book MONEY, THE BOOK which is available on amazon.com and in Australia on
amazon.com.au
Thanks guys.