Junior Precious Metals Miners: Go With Who You Know
Commodities / Gold and Silver Stocks 2016 Jun 02, 2016 - 06:55 PM GMTThe first few months of this year gave a little taste of what’s to come for the junior precious metals miners, if this is indeed the start of a new gold/silver bull market. Some sample charts:
There were dozens more like this, obscure little miners that soared when investors concluded that maybe they weren’t going bankrupt after all. Most have corrected a bit this month, but that just sets the stage for the next, much longer and steeper run once gold and silver resume their upward march.
But while it’s true that this kind of rising tide will lift all boats for a while, the biggest winners will be the best companies, which brings us to the eternal junior miner question: How do you tell the 40-baggers from the bankruptcy candidates when they’re all going up?
The imperfect but useful answer is to go with who you know. Management teams with a history of success tend to repeat that success. Not every time, but significantly more often than teams with less consistent records — or teams that are trying for their first big win.
With that in mind, Future Money Trends just released an interview with Keith Neuemyer, the man who built First Majestic Silver into a major force and is now gobbling up a portfolio cheap but promising properties for his First Mining Finance start-up. Here’s First Majestic’s chart (it actually outperformed the juniors in 2016’s first three months), followed by the Future Money Trends interview:
By John Rubino
Copyright 2016 © John Rubino - All Rights Reserved
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