Thursday, August 20, 2009
Junior Gold Miner Charts
These are from a few days ago, so they are already slightly out of date, but I wanted to post these as promised. These are charts of junior Gold miners that I thought looked interesting. Please understand that I have done NO FUNDAMENTAL ANALYSIS on these firms and am going by the "rising tides lift all boats" theme. Junior Gold mining stocks are going to the moon over the next few years and should be bought on weakness, not strength.
Remember, I believe in the Gold miners because of deflation, not inflation. Deflation is consistently good for Gold miners' profits, while inflation less predictably so. If you don't understand this concept, then you can look here or here for an explanation.
The sweet spot of this cyclical bull market in Gold stocks is pending and the low for the current correction is either coming in the next few weeks or in the late October to early December time frame. Junior Gold miners, in aggregate, will outperform senior Gold mining firms but have greater risk. Diversification in this sector is MANDATORY unless you personally know management, have toured the mines/properties they own, and understand the capital structure of the firm. Some juniors will go up 500-5000% and some will go to zero (i.e. go bankrupt and cause you to lose your entire investment).
Anyhoo, since there is no adequate ETF for junior Gold mining stocks (the Van Eck Global ETF that has a pending ticker symbol of GDXJ is coming, but don't know when yet), here is a chart of some juniors that I though looked interesting. My junior mining universe of stocks is currently limited to those that trade on US exchanges and, again, these charts are now 2 days old and in no particular order (sorry...).
Novagold (ticker: NG):
Richmont Mines (ticker: RIC):
Northern Dynasty Minerals (ticker: NAK):
Gammon Gold (ticker: GRS):
Tanzanian Royalty Exploration (ticker: TRE):
Claude Resources (ticker: CGR):