Excellent read. Link below........................
Conclusion
Are you ready for some contrarian investing? If so, today’s junior gold market is the place to be. Here you have a sector that has been starved of capital both from financial institutions and investors for years, due to the gold bear market, with companies trading at much lower valuations than they should be if investors were to go by fundamentals. With “blood in the streets” of gold mining stocks, now is the time to buy. But not just any gold mining company will do. A lot of investors like the producers because they have a stream of revenue from metal sales but the producers have a problem: they are running out of gold.
This makes junior miners particularly attractive. Not only do juniors offer investors the chance for a much bigger return on investment than a mid-tier or major, they are also assuming a more important role in the mining food chain than previously, by doing the work of exploring and developing new deposits that majors require in order to keep producing gold at current prices, thus satisfying their shareholders and bankers.
Gold exploration companies with properties that have a decent shot at a discovery or better yet, the opportunity for expansion, are the ones to watch, since they are most likely to be of an interest to a major who will take them out, resulting in the elusive “10-bagger” or more that is the holy grail of junior resource investing. I'm on the lookout for quality gold exploration plays that can leverage the next leg-up for gold. Is how undervalued gold stocks are right now on your radar screen? Contrarian investing is on my screen. Is it on yours?
If not, perhaps it should be.
Richard (Rick) Mills aheadoftheherd.com
