There is simply no reliable substitute for exhaustive due diligence when paring down a list of potential investments, but fielding ideas from the right sorts of sources can help to reduce risk from the start.
For investors looking to gold and silver miners for exposure to the bullish long-term outlook for prices of those metals, it's hard to ignore Sprott Asset Management as a compelling source of investment ideas within the sector. During the first quarter of 2011, SEC filings show the precious-metal specialist making a number of interesting moves.
An understandable round of profit-taking led to slightly reduced stakes in several of Sprott's noteworthy outperformers, including a 19% reduction in its holding of silver streaming sensation Silver Wheaton
Subsequent to the quarter-end, it is worth noting, Sprott reportedly liquidated some $34 million worth of the Sprott Physical Silver Trust, and Fools will no doubt join me in anticipating the second-quarter filing to see which silver equities were purchased with the proceeds of those sales.
Among the stand-out purchases executed during the first quarter, Sprott doubled-down during the period on its stake in the company that Fortune Magazine heralded as the fastest-growing company for 2010: Eldorado Gold. Eldorado is a prime choice for investors looking for exposure to gold production in China, and continues to offer the most aggressive production growth profile among its peers. Sprott also added 36% to its stake in Yamana Gold
Finally, I would like to point out a new $25.7 million investment by Sprott in Extorre Gold Mines
Fool contributor Christopher Barker can be found blogging actively and acting Foolishly within the CAPS community under the username TMFSinchiruna. He tweets. He owns shares of Alexco Resource, Brigus Gold, Claude Resources, Eldorado Gold, Exeter Resource, First Majestic Silver, Silver Wheaton, and Yamana Gold. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a golden disclosure policy.