Junior gold stocks – should you buy the gold junior mining stocks
As a continuing series on the gold investing and my first post on buy gold stock and subsequent series on gold stock investing I was wondering what have been the returns on the junior gold stocks.
Now if you are a stock market beginner then you will ask what the junior gold stocks are and how to pick these junior gold stocks.
Junior gold stocks
These gold stocks are those which just do exploration in search of gold and in general do not invest any money in mining that gold. That means that they are potentially in search for the elusive precious metal which is gold.
Now these gold mining and exploration companies may have different strategies when it comes to mining the gold. Each stock and company will have its own growth path and it all depends on the stage where they are when you post them. Some may be so close to having their fist success and that are the ones which will give you the bets returns.
How to pick the best junior gold stocks
Putting in some insane amount of time in the research will help you and that means that you will be again substantial profits for your stocks before anybody else. But beware researching the junior gold stock is not easy. The reason being that these junior gold companies are not like you blue chip companies which have the good investor relations departments which will have all the data that you require.
What you need to do is go to company website ask for the information that you want and get online and keep on researching the background of the companies and the promoters and use the NYSE and the NASADQ and even the websites of the exchanges of other countries like Canada to make sure that you get all you can on these companies.
Now some companies may be good but a lot will be shady also with no major discovery and no major operations. Beware that there may be a lot of companies that have merely changes their name to cash in the boom in the stock market for the gold stocks.
Here are some of the ones which I have listed here but again you will need to do your own research and find the best..
Apollo Gold Corp. (AGT)
Minefinders Corp. Ltd. (MFN)
Crystallex International Corp.(KRY)
Minco Gold (MGH)
Western Goldfields ( WGI)
Tanzanian Royalty Exploration (TRE)
Golden Star Resources (GSS)
The junior gold stocks have delivered huge returns because of the bull run in gold prices and it would be better to keep your watch on these as some these will hit a jackpot soon an can make you the millions.
In general people say that junior gold stocks are actually the gold exploration companies who explore the unknown territories with chance of getting the gold. Their modus operandi is that once they hit the gold reserves they will sell it to m mining companies and then start all over again. Well nothing wrong with that but you will need to make sure that you catch them on the curve when they are just about hitting the gold reserves. A tough task to do and that is why a huge amount of research is very important.
The junior gold stocks are tracked by the S&P/TSX Venture Composite Index (CDNX).
At today’s levels the gold mining stocks at lows at which you can easily fathom to buy these and hopefully they will deliver very good returns and definitely much more than the large cap gold stocks.
Related posts:
- Best Canadian Gold Stocks to buy now
- List of gold stocks and the gold stocks list
- Gold Stocks to invest even after gold prices go high
- Gold stock investing – ways of owning gold
- Buy gold coins online as an alternative to holding gold stocks
Filed Under Stocks to Buy | Leave a Comment
Tagged With best junior gold stocks, buy gold stocks, junior gold mining stocks, junior gold stocks, junior gold stocks amex
Comments
Leave a Reply