The precious metals industry is just one of many industries related to natural resources. Gold is a unique asset because it has been part of the world economy for so long. The value of gold cannot be understated. It has been integrated with today's economy in various vital ways.
Many organizations and investment experts recommend that you put a small portion of your retirement funds into gold. There are a few ways to do this. It's possible to invest in companies that work within the precious metals industry. But it's also possible to buy actual gold.
Bear Lake Gold is a company that you might consider investing in. But what exactly do they do? What investment opportunities are there, and do they have an option to create a true gold IRA?
If you are interested in investing, make sure to take a look at our highest recommended companies for this year!
About Bear Lake Gold
Bear Lake Gold is a gold exploration company based in Canada, which publicly trades on the Canadian stock exchange. You can buy shares in the company. Recently, they have merged with another company called Sabre Gold Mines, which acquired them.
The primary project handled by Bear Lake Gold is the Larder Lake project. This project is found on the Cadillac-Larder Lake in northeastern Ontario, a region that's known for its mining districts. The property has a 100% interest in the company's Fernland, Cheminis, and Bear Lake properties.
In addition, Bear Lake Gold has a 75% stake in a property called Swansea, located in the same area. These four projects are all spread out over about eleven kilometers. Since these locations are close together, the company can focus on them without expending a lot of overhead resources. But since they're spread out, there's a great deal of interesting terrain for Bear Lake Gold to explore.
The Gold Fields option is an agreement that was entered into by Bear Lake Gold in April of 2012. The other party in the agreement is a company called Gold Fields Abitibi Exploration Corporation, which is the gold exploring subsidiary of the larger Gold Fields Ltd company.
According to the terms of this agreement, Gold Fields can earn a maximum of 60% interest in Bear Lake Gold's Swansea, Fernland, Cheminis, and Bear Lake properties. However, they must adhere to an agreement to spend $40 million exploring and developing parts of the properties.
The exploring and developing is meant to occur in two stages.
Then if Gold Fields finds anything worth developing during the exploration, Bear Lake Gold might acquire financing for the development by having Gold Fields arrange a loan. If Gold Fields does arrange this loan, then they'll earn 5% interest on top of their existing interest with the affected properties. So the maximum possible interest is 65%.
However, if Bear Lake Gold secures financing through its own means instead of through Gold Fields, then Bear Lake Gold will keep 40% of their interest.
Throughout the option period, Gold Fields will remain the manager of the exploration. There will be a committee with two representatives from both involved companies to review the projects and oversee the work. When the joint venture goes through, Gold Fields will have the right to be the main operator of the situation.
About Sabre Gold Mines
Sabre Gold Mines is the company that acquired Bear Lake Gold. The two companies have merged together and share all of their assets. Sabre Gold Mines used to be called Arizona Gold Corp, but changed its name upon merging with a company called Golden Predator Mining Corporation. If you want to buy stock in Bear Lake Gold, Sabre Gold Mines is where to look.
Sabre Gold is a mining company that produces gold in North America. The company is publicly traded and diversified, with multiple assets and subsidiaries. Bear Lake Gold is just one example of the exploratory branches of their firm.
In addition to having acquired several other precious metals companies, they are the sole owners of the Copperstone gold mine in Arizona, as well as the Brewery Creek gold mine in the Yukon. Both of these mines used to produce gold, although there are not currently any operations in progress. There are plans to begin operations at Brewery Creek and Copperstone in the future.
As for other physical assets, Sabre Gold keeps about 1.1 gold ounces on hand and measured. They also have around 1.5 ounces of inferred gold, meaning gold that has not been mined yet but is expected to exist in their mines. Their total land ownership encompasses more than 230 kilometers squared, while there are additional exploratory projects going on.
Sabre Gold's executive team is made up of mining professionals who have built their careers in creating mines, operating mines, and exploring potential mine sites.
Right now, Sabre Gold's shareholders are broken down into three categories. The largest portion is made up of retail investors, with 35% of shares owned through these. Then another 32% is owned through family offices and investment funds. Finally, executive officers and directors at the company own 33% of the funds.
Since the company does not have active mining operations currently, the stock is relatively low priced. If there are successful mining operations in the future, then the stock has significant potential for growth. But there are other mining companies with more robust projects that see greater shareholder return each quarter.
All in all, Sabre seems like a well maintained company with an ambitious future. The question is just whether they have the type of investments that you're looking for.
Is Bear Lake Gold a Scam?
Bear Lake Gold isn't a scam. But it also isn't a gold IRA company, so it's not an ideal option if you're seeking a gold IRA. This is a gold exploration firm that has been acquired by another company called Sabre Gold Mines. While it is a successful company, they don't provide the IRA services that you might be looking for.
If you are interested in purchasing shares in this company, you can do so through the TSX Venture Exchange. The company's symbol is BLG. Since being acquired by Sabre Gold Mines, it's possible that you will need to buy shares in Sabre instead. Bear Lake Gold no longer operates as its own company and instead has mingled its assets and projects with Sabre.
Types of Gold Investment
Gold is an important asset when it comes to the economy. There are global economies that have been reliant on gold for thousands of years. This precious metal is a rare commodity, and it comes with some advantages.
For example, gold is a tangible asset, unlike stocks or cryptocurrency. It is also an alternative asset that is not tied to any central bank or government. Because of this, it is not subject to the same inflation risks as central currencies. Many Americans are worried about how the current rate of inflation will affect their retirement.
Gold is also considered a relatively secure asset. Though there is never any guarantee with an investment, gold does perform well when the traditional market struggles. During both the 2008 recession and the COVID-19 pandemic, gold soared in value. That's because demand went up as people pulled their money out of the failing markets.
There are ways to invest in gold by using "traditional" assets. One is by buying stocks in companies that work in precious metals. Buying stock in Bear Lake Gold or Sabre Gold Mines is an example of this. Some of the types of company that you might be able to invest in include:
If the company is publicly traded, then you can buy shares individually on the stock market. If the company is privately traded, then you might need to invest in certain mutual funds or networks in order to access the shares. Similarly, you might consider using a mutual fund if you don't have enough money to buy an entire share of a company.
But these methods still work within the traditional bounds of an investment portfolio. You're still buying stocks and funds, rather than tangible items. So what if you do want to buy tangible gold?
Tangible Gold IRAs
You can invest in tangible gold using your IRA if you want to. The IRS passed legislation in 1997 allowing for gold to be kept in a retirement account. But you can only buy coins and bars of a high purity standard, and you have to store them with a safe depository. IRS-approved depositories typically have extremely strict security measures, third party auditing systems, and full insurance policies.
Gold won't earn you dividends, and you'll have to pay some minor fees to keep your account open. But you will be able to liquidate your assets when you need them, once you've reached retirement. If you're concerned about how your money will hold up against the traditional economy, gold offers some peace of mind.
It's not easy to deal with the paperwork, though. The IRS has created a number of legal hoops to jump through. And nobody wants to get in trouble with the government just because they didn't understand the regulations.
So if you do want to buy gold with your retirement savings, you should work with a gold IRA dealership. These are companies that specifically stock IRA-approved gold products. Not only that, but they have experts on staff who will answer your questions and walk you step by step through the paperwork.
Pros & Cons of Bear Lake Gold Gold
Bear Lake Gold is a publicly traded company that was recently acquired and merged with Sabre Gold Mines. If you're interested in investing in the precious metals industry, you might consider buying a share. As a shareholder, you will receive a portion of the company's profits each quarter.
However, there are some drawbacks. Bear Lake Gold is an exploration company rather than a mining company. They are also relatively small when compared to some other operations. As a smaller company, they are subject to more risks if their projects fall through or are delayed.
In addition, the stock market comes with its own challenges. The price of a company's stock is not tied directly to precious metals, although generally gold exploration companies increase in value as gold does. There are other factors at play as well. Things like business competition can make or break the price of your investment.
There is no way to invest in physical gold through Bear Lake Gold. If you want to buy physical gold, you need to transfer your retirement funds to a self-directed IRA. Then you need to buy IRS-approved products and store them properly. It's best to work with a gold dealership that has IRA experts on staff so they can make sure that you've filed all of your paperwork appropriately.
You can check out our list of top recommendations for gold IRA companies. We usually recommend Goldco as our top pick for new investors.
Don't forget to check out our top recommended companies before investing!