Andrew Kaip, managing director of mining equity research at BMO Capital Markets, says the stark reality is that the precious metals sector is only part way through a down cycle and that structural issues will result in a fresh phase of consolidation.
Now is the time to be brave, to buy when everyone else is selling, advises Stephan Bogner, analyst with Rockstone Research and CEO of bullion dealer Elementum International. Content to go against the grain, Bogner believes investors should be 100% invested in precious metals.
"Half science, half art, half luck," is how Brent Cook describes a geologist's work in distinguishing an anomaly from a deposit. But here he suggests investors will have an easier time distinguishing good drill results from bad if they know how to dissect a company's press releases.
What if the shockingly low valuations of some junior mining companies are really all they're worth? As the market shakes off years of exuberance, theco-editor of the Exploration Insights newsletter searches for the truly undervalued — finds as rare as gold itself.
Exploration Insights president, CEO, publisher and author, suggests that those who postpone buying decisions for too long risk missing the boat on some real "gems." He advises investors to evaluate potential juniors the same way the majors do.
The editor of Exploration Insights describes the past 15 years of change in gold, copper and iron while sharing what he sees as the fatal flaws and opportunities in this complex industry and detailing factors he looks for before investing.
In the high-risk junior resource sector, 95% of the companies investors might choose will fail to hit paydirt. For your best chance to pick winners from among the remaining 5%, the Exploration Insights Editor has some advice.