After a relatively quick run up in the value of gold, when’s a good time to consider taking another look? Recently, the Wall Street Journal examined the junior miners, and the good opportunities there may be for investors interested in wisely timing stock purchases of early-stage firms.
From Wall Street Journal:
“For too many investors, though, this pursuit of El Dorado ends up as a financial nightmare. Even if you are lucky enough to pick a miner that finds a rich vein of gold, you can arrive so early that your stake crumbles while the miner navigates the hurdles between locating a gold deposit and actually producing it.
“Despite the ‘great sex appeal’ of early-stage mining companies, ‘most just wash out,’ says Frank Holmes, chief executive of U.S. Global Investors, which runs a gold and natural-resources fund. Those that do find a viable lode often end up hamstrung for years by environmental or governmental delays that erode share prices.
“The best way to reduce your risk: Focus on junior miners that are within a year of production. And understand the lifecycle of small mining stocks before you invest.”
The WSJ explains that the lifecycle of a junior miner includes three distinct phases, and you should know which phase the company you’re researching may be in. They include:
Read more about the three stages and what they could mean for your potential investment in the Wall Street Journal’s coverage of when you should join the next gold rush.
Also, don’t forget that in July Frank Holmes will be speaking at the Agora Financial Investment Symposium in Vancouver. You can find more details about registering for the event here.
Rocky Vega,The Daily Reckoning
New Orleans-based McMoRan Exploration Co. (NYSE:MMR) is an on- and offshore exploration, development, and production company for oil and natural gas in the Gulf of Mexico and on the Gulf Coast. The company’s latest game changer is an $818 million purchase from Plains Exploration & Production Co. that includes several shallow-water leases.To look at the […]
Rocky Vega is publisher of Agora Financial International, where he advances the growth of Agora Financial publishing enterprises outside of the US. Previously, he was publisher of The Daily Reckoning, and founding publisher of both UrbanTurf and RFID Update -- which he ran from Brazil, Chile, and Puerto Rico -- as well as associate publisher of FierceFinance. Rocky has an honors MS from the Stockholm School of Economics and an honors BA from Harvard University, where he served on the board of directors for Let?s Go Publications, Harvard Student Agencies, and The Harvard Advocate.
The first word of your title appears to be a typo. Wow.
Ditto, You’ve got a typo in your main heading!
Guess firing all your copy editors wasn’t such a hot idea after all, huh?
America is a country like no other. Comprised of people from all corners of the globe, America exists solely because people chose to become Americans. But what does that mean? And how does it influence the concepts of liberty and freedom Americans feel so entitled to? Bill Bonner explains...
The market loves to trick investors into thinking a stock is better than it actually is. Because the market feeds on suckers... and then wipes them out one by one. Today, Greg Guenthner shows you three stocks that may look like a buy, but are really just traps to clean you out. Read on...
David Stockman's position is crystal clear: Since the time of Greenspan, low to zero interest rates a la the Federal Reserve have slowly eroded the bedrock of capitalism - the price mechanism. At least a few other investors and economist's agree with him too. But none of those other commentators have gone through the painstaking details to explain why. In today's featured essay he reveals all...
Just because it's "bad" doesn't mean it's bad for you. Heck, if you avoided everything people said you should, you'd never leave the house. But there are actually several "vices" you can safely indulge in that will greatly improve your way of life and may even help your health. Mark Sisson describes five of them, right here...
Markets continue to hit new highs, the US still enjoys cheap energy prices, and all is right with the world... Er... Sort of. As Byron King explains, the conflict in Iraq could soon get a lot worse, and that has serious implications for all Americans... especially those looking to take advantage of the ongoing US oil boom. Read on...
Maybe "don't buy in July" should be a new stock market rule. After all, financial reporters love rhymes. Why do you think "sell in May and go away" gets so much press every year? But how do you play this trend? Greg Guenthner explains...