Junior Miners Poised for Impressive Gains
Like all commentators, I am somewhat constrained in what I write about: it has to be a subject in which people have interest. Sure, I could write about Greek mythology or backpacking in Bolivia, but if no one reads it, it becomes a fruitless exercise – and raises that cliché question “if a tree falls in a forest...?”
Regular readers will have noticed that I have been writing about precious metals mining companies more often in the last few months – and this is no accident. In my interaction with readers/investors there has been a sharp rise in awareness of and interest in these companies.
In contrast, during the panic of last fall, miners in general – and junior mining stocks in particular – had been devastated by the Wall Street-engineered sell-off, with many losing more than 90% of their value. With these companies sitting at once-in-a-lifetime valuations, no one (outside of the hardcore commodities investors) wanted to touch these companies.
In recent conversations with people, I have used an example of a brand-new, junior gold exploration company which I am holding – a spin-off of its parent company, which has already produced one, major gold discovery. It was spun-out shortly before the worst of the panic at a price of 9 cents, and was pushed down to as low as 2 ½ cents. It closed yesterday at 73 cents a share – an advance of nearly 3,000% from its 52-week low.
About Jeff Nielson