There is a famous saying: when there is blood in the streets, that is when you buy. Right now, there is blood in the streets. Gold miners are getting hit. Junior exploration stocks are being thrown out with the rest. Sentiment is at generational lows. And I am buying.
I have been investing in the resource sector for decades, and in that time, I have learned one lesson above all others: the time to accumulate is when nobody wants to talk to you about your positions. That time is right now, in the summer of 2026.
Here is what I am watching, what I am buying, and why I think the next six months will surprise a lot of people.
The Setup: Why Gold Is About to Move
Gold is consolidating around US$4,000 an ounce. Silver is lagging, which I see as an opportunity; silver has historically been a late-cycle accelerator, and I have a target of US$50 for silver, which would represent a meaningful gain from current levels.
The mainstream narrative says the summer is slow, nobody is paying attention, and people are at their cottages or on vacation. I think they are wrong. The catalysts are building quietly.
China bought close to half a million ounces of gold last month. Their trade surplus is running at approximately US$1.4 trillion per year. That buying is consistent, structural, and essentially unlimited relative to any paper selling pressure we see in the West. China wants gold to come down so they can buy more. That is your floor.
On the macro side, I expect clarity by September. A new Federal Reserve chairman is being nominated. The administration likes lower rates. Whether or not rates actually come down, the directional bias is toward a more accommodative environment. At the same time, gold follows a very predictable seasonal pattern: Indian festival-season buying begins in September, then Christmas accumulation, and then Chinese New Year demand into February. We are about to enter the strongest five months of the year for physical gold demand. If you wait until October to start buying, you'll be behind.
What I Am Buying in Mining
The entire junior gold sector is at compressed valuations. Balance sheets are better than they have been in years. Many of these companies are generating free cash flow or sitting on cash that covers a substantial portion of their market capitalization. The market is ignoring all of it. That will not last.
In terms of specific companies, I am watching West Point Gold Corp. (WPG:TSXV; WPGCF:OTCQX; LRA0:FSE) carefully. Their drill results have been consistently good — wider, higher grade, getting better as they go deeper.
The company's current project is a low-sulphuration epithermal system right off the highway in Arizona, a mining-friendly jurisdiction, and it is close to infrastructure.
I visited the project recently. They are on track for a maiden resource by year-end, and drilling continues to deliver. When the gold market turns, this is exactly the kind of stock that runs hard.
I also like Galantas Gold Corp. (GAL:TSX; AIM:GAL; GALKF:OTCQB), which is developing two gold-copper projects in Chile. One project is going to production. The other project has a very interesting consolidation angle: it sits adjacent to a non-core Teck asset.
The two orebodies draw each other together geologically. Because of regulatory restrictions, Teck cannot acquire GAL, but GAL can acquire the Teck project. If that consolidation happens, you create a world-class deposit from two properties that are worth significantly less separately. The downside is supported by production; the upside is the consolidation story.
Management knows this and is executing.
The single most exciting drill catalyst I am aware of right now belongs to Cerro de Pasco Resources Inc. (CDPR:TSXV; GPPRF:OTCQB; N8HP:FSE). The Cerro de Pasco mine was one of the great copper mines in history.
It was built by J.P. Morgan over a hundred years ago. The tailings from that mine have been sitting in Peru ever since. CDPR has already drilled the younger tailings. This week, for the first time in history, they are drilling the oldest tailings.
Think about that for a moment. Over a century of high-grade copper, gold, and silver extracted from that mountain, and the residuals have never been tested with a modern drill. The economics here are straightforward: copper-gold-silver tailings processing uses conventional methods at over 90% recovery. The smelter pays you, with negative smelter charges.
All of the economic parameters are known before you put a single drill hole in the ground. The only question is the grade. It is basically an underground copper/gold/silver mine at the surface if the grade is as good as we hoped. My estimate of the potential profit, not NAV, profit, is on the order of US$8-10 billion if the grade is there. That's about CA$20/share.
The drilling was delayed for over one year because another company wished to take over the crown jewel, but CDPR won early this year with the help of the US government.
I have been waiting eight years for this drill program to begin.
For exposure to larger producers, I keep pointing to B2Gold Corp. (BTG:NYSE; BTO:TSX; B2G:NSX). It is the cheapest senior gold producer I can find right now.
The Goose mine is ramping and could double their production. Full operating license in Mali, generating cash flow. Nearly a million ounces per year at current prices. Good balance sheet, free cash flow, and new management in place.
At this valuation, you are not being paid to take risk; you are being paid for owning a producing gold mine.
And if you want copper exposure inside a gold company, McEwen Inc. (MUX:TSX; MUX:NYSE ) is interesting. After five hard years, their operations are generating cash, and the company does not need to go to the market.
Their copper subsidiary, one of the largest copper projects in Canada, is targeting an IPO in the next 12 months. You are getting that copper exposure for nearly free at the current gold company valuation.
Morocco: The Copper Opportunity Nobody Is Talking About
One company I have been watching closely is Morocco Strategic Minerals Corp. (MCC:TSXV; GNSMF:OTCMKTS), a copper explorer in Morocco with a project I think most people do not yet appreciate.
The surface copper grades on this project are almost 10%, which is extraordinary by global standards. The team has consolidated the entire basin and is planning a systematic drill program this fall.
They cannot drill during the summer months due to desert heat, but when September arrives, the drill should begin.
What gives me confidence here is the founder. This is the same person who founded Aya Gold and Silver Inc. (AYA:TSX; MYAGF:OTCMKTS), formerly known as Maya Gold and Silver.
That stock was a major winner for my subscribers. The founder knows Morocco, speaks French, has deep connections in the country, and knows how to build projects in that jurisdiction. This is his second act in Morocco.
He is aiming for a multi-billion-dollar project. Right now, the market cap is tiny. The stock has pulled back from its listing price and is trading on thin volume.
I think that is an opportunity.
Two Biotech Stocks I Think Are 10-Baggers
I know many resource investors tune out when I mention biotech. But I have found that biotech and mining are more similar than most people realize. Both sectors need to raise capital constantly. Nothing moves until the catalyst hits—in mining, it is the drill results; in biotech, it is the clinical data. Then suddenly the stock moves. You analyze the management, the balance sheet, and the science. The methodology is the same.
My top biotech conviction right now is Satellos Bioscience Inc. (MSCL:TSX; MSLE:NASDAQ).
This company is developing a treatment for Duchenne muscular dystrophy (DMD).
I have personal history with DMD investing, having had a major win with Sarepta Therapeutics Inc. (SRPT:NASDAQ) years ago.
Satellos has the best data I have seen in this disease area.
The FDA has already seen its MRI-based fat reduction data, which is accepted as a surrogate endpoint for the approval pathway. Their placebo-controlled readout comes before the end of 2026.
The stock is trading around US$8-9 per share. The market cap is approximately US$200 million. The company is fully funded. If the data are strong, I think US$100 per share is achievable, a 10-bagger.
We are five months away from the readout. In my experience, these stocks start moving two to three months before the data.
The window to accumulate is now.
My second biotech idea is Coya Therapeutics Inc. (COYA:NASDAQ). This is a David Einhorn investment. The stock has done nothing essentially since the IPO approximately four years ago. Investors who came in at IPO are flat to underwater.
The readout is expected in Q1 of next year, though there can be delays. I am meeting with management in the next few weeks to get a direct update.
If the data hits, this is another 10-bagger potential.
The risk-reward is exceptional: you are buying alongside people who are tired and flat, with a major catalyst on the horizon.
One More: Sparc AI (SPAI:CNQ, SPAIF OTCMKTS) — The Drone Defense Play
Outside of resources and biotech, there is one special situation I want to flag for readers who follow my work closely. I was an early financing investor in Sparc AI Inc. (SPAI:CSE; SPAIF:OTCQB; 5OV0:Frankfurt).
I remain a shareholder and have been a buyer during the recent downturn. Most people do not know this company yet, which is exactly why I am mentioning it.
Sparc has built something genuinely differentiated in the drone defense space: unlike most competitors who process image recognition on the drone itself in order to get location information, which drains battery, limits range, and constrains payload, Sparc processes everything centrally on the ground and can provide precise location information in real time, perfect for the GPS-denied area.
The drone stays lightweight. You can control multiple drones from one central unit. The power stays where it belongs. That architecture makes them particularly effective for precision loitering munitions and long-range applications, which is why their technology is currently being tested and deployed in Ukraine.
As per their recent announcements, the company has signed several agreements in Ukraine for testing Overwatch. They cannot yet release video from the field for the safety of personnel involved, but the results are coming.
They have been hiring highly experienced "superstars" from the drone industry, and the newcomers prefer shares over a high salary, which tells you something about where the talent in this sector sees the future going.
The stock is down this summer, along with everything else. I think that is an opportunity for patient investors who understand that defense AI contracts do not follow the same seasonal patterns as resource stocks.
Once they start to generate significant revenue in Q4, as the management guided, the stock can have a major move, which is a perfect time to be listed on NASDAQ.
Final Thought: Do Not Wait for the All-Clear Signal
Every great resource bull market I have lived through has had a summer period where investors gave up. Where even the believers started to wonder. Where the newsletters got quiet, and the conference booths got empty. That has always been when the best money was made.
Gold at US$4,000 is not a ceiling. China's structural demand for gold is not going away. The seasonal tailwinds are building. And an entire generation of junior mining companies has spent the last two years building solid balance sheets and high-quality drill targets at a time when nobody was watching.
When the market turns, it turns fast. The time to do your work is when it is uncomfortable. That time is now.
Chen Lin is an independent investor and newsletter writer based in New Jersey. He has been investing in junior resource companies for over two decades and also covers biotech catalyst opportunities. Gordon Holmes of Streetwise Reports introduced Chen to several of the companies mentioned in this piece.
Important Disclosures:
- Sparc AI Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$3,000 and US$6,000.
- As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Sparc AI Inc., Morocco Strategic Minerals Corp., Galantas Gold Corp., and West Point Gold Corp.
- Chen Lin: I, or members of my immediate household or family, own securities of: All. My company has a financial relationship with: None. My company has purchased stocks mentioned in this article for my management clients: None. I determined which companies would be included in this article based on my research and understanding of the sector.
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