Natural Resource Investing
Why Mining Stocks May Demand a Different Kind of Research
It’s no secret that Jim Rickards tells all his readers the importance of gold and silver in a wealth plan.
Jim means actual “hold in your hand” metals.
But what about gold stocks?
What about silver stocks?
The miners?
The explorers?
Big metal producers? Or the tiny, high-risk, high-potential-reward junior miners?
Naturally, that’s where things can get complicated…
WorthNet’s partner adviser, Rob Villaflor, CEO of Sprott Wealth Management, recently did a podcast interview with Sprott Radio on this very subject.
During the interview, he describes why resource investing works differently from most stock investing – and why many investors underestimate how specialized the work can be.
As he bluntly put it:
“The natural resources space is really tricky.”
Villaflor wasn’t referencing headline commodities like gold alone – but the companies behind the discoveries, the drill results, and the production pipelines.
“These are very esoteric companies, especially when you get into the junior mining space,” he explains.
That’s because, unlike large household-name stocks, many mining and critical-materials companies depend on geological data, field validation, and technical interpretation. It’s not just earnings calls and analyst coverage.
That difference shapes how serious research gets done in this corner of the market.
Villaflor describes Sprott’s internal process this way:
“We have geologists on staff. We send them out to inspect mining sites and examine drill results firsthand. And we have a morning meeting every day to review previous-day news, whether it’s from Canada, Australia, the U.S., or elsewhere.”
In other words, due diligence often occurs far upstream of what shows up in a stock chart.
For example, imagine a small mining company announces a promising discovery but still needs several years of technical studies, permitting, and financing before production is even possible.
During that stretch, there may be long periods with little headline news – and meaningful price volatility along the way.
So what does this look like in a real portfolio?
How Resource Exposure Could Fit Into a Portfolio
Rickards has long argued that hard assets can play an important role in a broader portfolio, but not as an all-or-nothing bet.
To that point, Villaflor explains that many high-net-worth clients don’t try to run their entire portfolio through a natural-resources lens…
Instead, they frequently carve out a dedicated allocation – and have that portion handled with specialized research.
In other words, resource investing is often treated as a focused segment inside a diversified portfolio – where deeper domain expertise can be applied – rather than a wholesale portfolio shift.
Specialist research, field validation, and long-cycle advisory structure are some of the ways professional resource investors approach the space.
For readers exploring how a natural-resources allocation might fit into their broader strategy, one path some investors consider is speaking with advisers who focus specifically on this sector.
WorthNet connects readers with vetted independent advisers across several specialties. You can learn more about how that matching process works by clicking the button below.
WorthNet itself doesn’t provide advisory services and is not a client of Sprott Wealth Management or the other advisers; rather, we are compensated for promoting certain advisers in our network and we have a financial incentive to recommend these advisers, which creates a material conflict of interest.
Robert V. Villaflor
CEO of Sprott Wealth Management
Natural Resource Investment Strategist
Robert V. Villaflor is the CEO of Sprott Wealth Management, where he leads a team of advisors who work with investors seeking exposure to alternative investments and real assets as part of a diversified portfolio approach. Sprott Wealth Management (CRD #139022) is a proud member of the WorthNet partner adviser network.
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Last Revised: April 9, 2026
Sprott Disclosures – Investment Risks and Important Disclosure: Relative to other sectors, precious metals and natural resources investments have higher headline risk and are more sensitive to changes in economic data, political or regulatory events, and underlying commodity price fluctuations. Risks related to extraction, storage, and liquidity should also be considered. Gold and precious metals are referred to with terms of art like “store of value,” “safe haven,” and “safe asset.” These terms should not be construed to guarantee any form of investment safety. While “safe” assets like gold, Treasuries, money market funds, and cash generally do not carry a high risk of loss relative to other asset classes, any asset may lose value, which may involve the complete loss of invested principal. Past performance is no guarantee of future results. You cannot invest directly in an index. Investments, commentary, and opinions are unique and may not be reflective of any other Sprott entity or affiliate. Forward-looking language should not be construed as predictive. While third-party sources are believed to be reliable, Sprott makes no guarantee as to their accuracy or timeliness. This information does not constitute an offer or solicitation and may not be relied upon or considered to be the rendering of tax, legal, accounting, or professional advice.
*The exact percentage of physical gold, silver and related equities in an investment portfolio depends on several factors including an investor’s risk tolerance, investment objectives, time horizon, income requirements and overall financial situation. As Sprott and Jim Rickards are not affiliated, Sprott is not necessarily in agreement with any of Mr. Rickards’ opinions.