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Here are the types outlined in the video:
1. Explorers. The people with little more than a promise that they have gold in the ground they have the rights to. They probably don't, but if they do, the returns could be quite significant in a short amount of time. There are also opportunities for traders here; many of these stocks will bounce around regardless of whether or not the stock actually generates much of anything.
2. Producers. The small producers, often referred to as juniors, are characterized by having a production of less than 1 million ounces of gold per year. They are often in the sweet spot of not having explorer risk while not having the limited growth opportunities seniors do. Moreover, they are also often acquisition targets for the majors. Examples include AuRico Gold (AUQ) and Minefinder (MFN).
3. Majors. The majors, often referred to as seniors, are firms characterized by producing more than 1 million ounces per year and have a market capitalization of greater than $10 billion. These stocks are often lower risk, and issue dividends as well. Newmont (NEM) is a prime example.
4. Financiers. The prospector model is one in which a company acts like an investment fund and invests in a bunch of explorers and producers, typically looking to acquire royalty streams in which they get X% of the revenue mined by someone else for a given amount of time. This model has performed particularly well over the past few years. Examples here include Franco Nevada (FNV), Royal Gold (RGLD), and Silver Wheaton (SLW).