There are more than 3,000 junior mining companies worldwide. But the harsh reality is that most companies will never build a mine. So depending on your investing strategy, you need to be clear about what type of company you are looking at. We’ve spotted 5 that look really interesting… for different reasons.
You’ll have done the math by now. Over 70% of explorers won’t get into development or production, but doesn’t mean you can’t make money on these highly leveraged investment opportunities for a short period of time. You just need to know the rules of the game and be clear about your strategy. Most investors will want to have a portion of their mining investments in these more leveraged plays as it offers the blue sky potential excitement of ‘what could be’ and ‘multibagger returns’. And this is discussion for another article on another day.
Today I want to focus on the lower risk, lower leveraged, investments in development and production companies. Usually these will be longer hold investments, but with steady growth and the occasional dividend! Solid, safe investing, which should also be part of your portfolio investment strategy. So what does a company like this look like. Read more…..
Chart of the Day
Gold’s price pattern from January, 2019 to 2021 mirrors that of gold in the same two-year period, starting from 2010; both time periods saw gold rise to a top in the third quarter and both times saw prices drop from its high in almost identical magnitude and timing.