When the market bears are growling, contemplating a trip to a showcase of the companies currently in the grip of that punishment can seem daunting, but resource experts say now is exactly the time hard-core investors need to be out talking to management, hearing their stories and figuring out which companies will be on top when the good times come.
Even in a bull market investors are best advised to seek out the potential tenbaggers and presents several companies in gold, base metals and uranium with the potential to flourish even in the bad times.
As the price of gold rose upward, junior miners chased ounces at all costs. This was a huge mistake, says Eric Coffin, because it resulted in unexciting projects, low margins and a depressed market. New discoveries with high margins are the essence of the junior.
Gold juniors need to get back to the basics, says Eric Coffin, and it is going to take large discoveries to get the market excited again. In this interview, he explains how the new economics of gold production require investors to concentrate on companies with three specific qualities.
Thanks to a surging gold price that rally appears to have arrived. It’s not a broad rally yet. Traders are looking for companies with discoveries and management that knows how to add shareholder value.