Since the beginning of this new Gold Bull Market, Junior mining companies have seen on average a 300% increase in share price. The top producing Gold and Silver companies have seen on average about a 120% increase leaving the average junior miner offering shareholders more than double the value of the Top Producing miners.
Normally after a Bear market in Gold, when the price of Gold begins to rise, we usually see the Major Gold Producers Like Barrick Gold, GoldCorp etc increase in price first. But this cycle has created so much demand for Gold, investors have been heading straight for the Junior mining sector as stock prices were hammered down so low from the Low Gold prices over the past few years. To give you a few examples of this we can see that January 2016 Barrick Gold stock price was $10.81 and saw it's high in July at $30.30 offering investors a %300 percentage gain on investment. This is an outstanding return for only 7 months holding. If we look at a Junior Mining company we are following at Mining Stock Review we see Monarques Gold Corp was trading at .06 in January 2016 and today in July it is trading at .58! offering investors almost 10 tens your money invested. This is not the only example of this "10 Bagger" as we call it. all throughout the Junior mining stock inventory we are seeing this. While if you had invested in Barrick Gold which is the largest Gold Producer on the planet, A safe bet when entering the Gold space. you would have made a modest 300% to date, Junior mining 10 Baggers is attracting many more investors in search of these illustrious gains. The question is with the current price of Gold and with the already Billions of dollars entered into the markets and having many of the Juniors already been Bought out my Majors or already received Private Placement investments. Is there still any room to go with Junior mining stocks?
Personally, I believe although these amazing results have been seen, The Gold Bull market that has recently started this year is only beginning to take off and that there are still many more small Gold and Silver Mining companies that are set to explode. As the Price of Gold continues to rise over the coming months we will continue to see new money entering the markets and more of the phenomenal gains we have seen year to date will continue.
A few Junior we are expecting to outperform the market which hasn't had the full run that others had are.
- Integra Gold Corp (ICG.V)
- Santa Cruz Silver (SCZ.V)
- First Mining Fiance ( FF.V)
- Americas Silver Corp ( USA.TO)
- Great Panther Silver ( GPR.TO)
Although some of these stocks above have already had fantastic results year to date I believe that there is still room to run on them and when the price of Gold & Silver begins to go higher which it will soon, these stocks have a good chance of catching fire and offering investors great returns.