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Why I Like Junior Miners & Explorers


drbubb

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I think a sensible minimum to start is about C$25,000, spread over 5 shares

 

= = =

 

I think that is more within my budget and something I would be willing ro risk/loose for a potential higher return. Apologies if you this has been mentioned before (or just refer me to a link where this has been discussed before):

 

how and where can I invest into the minors ?

 

would I need to go through a Canadian broker or can I do this via a UK (or US broker) and do you have recommendations. I also have a german broker so need to check if it would be possible with them, I know I can trade worldwide with them but then the question is what are the txn costs per trade...

 

Any guidance welcome.

 

Many thanks !

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  • 2 weeks later...

KE Report visited the New York hard asset show.

 

On their site: http://www.KEreport.com

... you can find some good panel discussions and interviews.

 

Scroll down to the appropriate section, below the review of the week

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  • 3 months later...

I may be doing a presentation:

 

"WHY I invest in Canadian Junior Mining Shares",

and so, it is worth reviving this thread- to make notes in the Header

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I am just in the process of buying more physical gold, but intend putting a wedge of cash into the juniors over the coming months.

 

A couple of questions for anyone

 

If the major indexes fall by say 20/30% in sep-nov , would the juniors get hit more or less? my guess is more but this would be a great buying opportunity.

 

One argument for physical over the shares is that Asians/Russians/OPEC will only be buying physical gold not North American mining shares. If because of Peak Oil or skill shortages etc mining shares may not perform as well as one might think? any thoughts?

 

Who would you recommend as a reliable newsletter writer to get a list of good picks, Paul van Eden and Jay Taylor come to mind, Any others. I think I know one of Jim Puplavas juniors but would still be reluctant to put all my junior money into it.

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"If the major indexes fall by say 20/30% in sep-nov , would the juniors get hit more or less?"

 

MORE could be right.

But it also depends on what happens to Gold.

I think of Gold shares as sitting between Gold and shares, so if Gold is up, they may do okay.

However, Gold exploration shares are mopre vulnerable, since they need to keep raising money,

and will not have the Gold-link income streams that the miners have

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It depends on what causes the crash.

If it is a fear of inflation and a falling dollar, Gold will do well

 

If Gold shares are between Gold and Shares, you may have a downward influence (sliding shares)

and an upward one (rising gold)

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  • 2 weeks later...

ON SELLING ...

 

“Never, never, never buy just one gold stock, 4 - 6 is a minimum…”

Click!

 

And as each mining stock doubles in value sell half and reinvest that half in another recommended speculation.

 

“…many people automatically sell half their holding in a stock that has doubled. From then on, they reason, there is no way they can sustain a loss…” John Dorfman, president of Thunderstorm Capital in Boston. Click!

 

So following this strategy can easily find our initial half a dozen companies becoming 12 companies. And that 12 becoming 24. And the 24 become 48. This is how wealth is built. Do successful and internationally well known professional investors support this practice of selling half a stock when it doubles? Below, Doug Casey talks about the trading philosophy of the founder of the world’s most successful resource and precious metals investment company – Rick Rule.

 

Doug Casey - “One foundation of Rick’s remarkable success is his readiness to sell once he earns a good profit. He’s not tempted to risk everything by holding on for an ever bigger return... that may or may not materialize. In Rick’s view (which we share), if you’re going to err in this business, erring on the side of caution is the least painful mistake you can make.”

 

///MORE? http://www.kitco.com/ind/vaughn/sep142006.html

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TEN SECRETS TO INVESTING IN JUNIOR MINERS & EXPLORERS

 

+ A Top Performing sector, but not widely followed

 

00atn4.gif

 

- -

 

+ Small can be Better, in Exploration

 

Small Exploration companies...

- can get the job done cheaper,

- they are more nimble and adventurous,

- provide more upside, when they make a discovery,

...so can attract top talent

 

00a2gj0.gif

 

Large Mining companies...

- have lost many of their best exploration geologists,

- have cut budget, or jv-ed with smaller co's

- are acquiring smaller companies at the right stage

(some names: Virginia Gold ...)

 

- -

 

+ First $2 million ... Can be found for New Mining Ventures

 

Costs of going Public:

- China: 2-3 years, and over us$1 million

- Hong kong: hk$10 million = us$1.25 million

- London: pds 400,000 = us$ 700,000

- Canada- venture = maybe c$ 100,000

 

every dollar counts, at an early stage

scandals of the past, have been minimised by new regime.

 

- -

 

+ Capital Gains matter not Cash Flow

 

+ The Quickest gains is in the Drilling Phase

 

20050228A.jpg

 

+ when it doubles, sell half

 

+ Junior Miners are a Geared Play on Gold

 

+ there's sizzle in seasonality

 

+ placements are structured for profits

 

+ a dud project is not the end of the road

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