Junior Gold Mining Stocks | Junior Stock Review
Picking Junior Gold Mining Stocks – A Basic Guide
There can be a big upside to investing in junior gold mining stocks – if you can be a contrarian and speculate opposite to the crowd, choosing the right junior gold mining company becomes much easier.
This is a high level, quick guide to choosing junior gold stocks. While these points can give you a good foundation, I always recommend that people do their due diligence before investing in any stock, whether they’re gold, some other type of mining or even from another sector.
- Proven and serially successful people are the key to success when picking junior gold mining stocks.
- A good property in a good jurisdiction is the second most important cog in picking a junior gold mining stock. The old adage location, location, location, is so very true in the junior mining sector. Whether they’re mining stocks for companies with gold deposits in Canada, the USA, Africa or South America, you will want to look at a few key location factors:
- Politics – are the jurisdictions’ politics favourable to mining?
- Infrastructure availability – does the property have access to the power grid, roads, railway or seaway ports?
- The geology of the property – does the geology make sense for the type of deposit that is being explored? Is it near any producing mines?
- Capital, more specifically, how much do they have and how quickly are they burning through it. Do they have enough capital to reach their goals? If not, they will have to refinance, which will dilute your shares. Cash is king for junior companies; understand the company’s cash position in the present and future and you will be ahead of most.
Ready to wet your feet investing in junior gold stocks? Check out the resources and reviews I’ve listed below to get started:
Strategies for Successful Buying and Selling
Risky Business – A guide to managing risk in the junior resource sector
Choosing the Right Financial Product for You
Invest Like an Insider