Best Mining Stocks | Junior Stock Review
A Quick Guide to Junior Mining Stocks
If you’re new to investing or are thinking about adding some junior mining stocks to your portfolio, consider this a very simple and straightforward guide to what these mining stocks are, the potential risks and rewards when investing in junior mining companies, and some resources to further your research in this sector.
Junior Versus Major Mining Stocks – What’s the Difference?
If major mining stocks are well-established companies with a steady influx of cash and world-wide operations, juniors are the poorer younger sibling. Whether the company is based in the juniors Mecca, Canada and the USA, or some other part of the world, juniors typically go one of three ways – with the most common fate being failure. The other possible fates are for the company to be bought out by a major or, the best scenario for an investor, they uncover a huge deposit of a mineral that’s high in demand.
The risk of investing in these stocks is also the appeal, as junior miners can return more in a couple of days than a major could return in several years. Intrigued? Just like any other market, choosing the best mining stocks requires you to do your due diligence.
Start your search for the next 10 bagger by examining the risks involved with the various types of junior mining companies, check out my article Risky Business.