The 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:
Images: Flickr (licence attribution)
About The Author
DollarCollapse.com is managed by John Rubino, co-author, with GoldMoney’s James Turk, of The Collapse of the Dollar and How to Profit From It (Doubleday, 2007), and author of Clean Money: Picking Winners in the Green-Tech Boom (Wiley, 2008), How to Profit from the Coming Real Estate Bust (Rodale, 2003) and Main Street, Not Wall Street (Morrow, 1998). After earning a Finance MBA from New York University, he spent the 1980s on Wall Street, as a Eurodollar trader, equity analyst and junk bond analyst. During the 1990s he was a featured columnist with TheStreet.com and a frequent contributor to Individual Investor, Online Investor, and Consumers Digest, among many other publications. He currently writes for CFA Magazine.