Masterclass: Investing In Gold/Silver Mining Stocks (Part 2)
Don Durrett Aug 5, 2026
Summary
Portfolio risk is managed through a pyramid that gives larger allocations to bullion, ETFs, majors, and mid-tier producers.
Don Durrett favors mid-tier producers for their balance sheets, free cash flow, and capacity to grow through acquisitions.
Allocation should decline as company risk rises, with developers and explorers receiving smaller positions than established producers.
Long-term investors should avoid over-trading, buy corrections rather than rallies, and sell when a company’s underlying story changes.
Exit decisions should combine valuation, operating performance, targets, and market froth instead of harvesting winners too early.
Key points on 1911 Gold
- The guest says he added to 1911 Gold at about US$0.48, arguing it was heavily discounted and should trade nearer US$1.
Don Durrett's takeaways
- Top takeaway Don Durrett argues that a portfolio should use a pyramid structure, with larger allocations to lower-risk bullion, funds and quality producers to help withstand volatility.
- He sees mid-tier producers as offering the best risk/reward because strong balance sheets and free cash flow can support quicker growth through acquisitions.
- He advises limiting allocations to higher-risk developers, small producers and explorers, noting that many will fail to meet their potential.
- He argues investors should buy dips rather than chase rallies, using the 200-day moving average and disciplined entry prices as guides.
- He says selling should wait for market froth and company-specific exit criteria, rather than taking profits too early.