Dog Days Of Summer

Canada gold, junior mining companies

The junior exploration business in Canada follows a fairly predictable pattern: deploy drills as early in spring as the local climate allows, drill through the summer, begin reporting drill results in mid to late August and continue through until November.

Right now there are dozens of companies waiting for first results.

But this year is a little different.

With gold over $1500 USD and silver hitting $17.25 we look to be at the beginning of a significant precious metals rally. The first in nearly a decade. (We have already past the prices of the run-up in 2016.)

In a rally, good drill results will be multiplied as people look for a reason to buy exploration companies.

Typically the sequence in a rally is for the metals to increase in price, then the senior producers, then middle tier companies and, finally, after the rally has established itself, the junior explorers come into their own. But where the metal price is, at best, a 3x profit if you get the timing exactly right, junior explorer and developer shares can run 5-to 20x.

I’ve written a very short book on the performance of junior resource shares in a rally.

Gold $3000 | Silver $60 is available to pre-order at Amazon and will be delivered August 16th.

I wrote the book for my wife who wanted me to explain in simple terms why investing in junior exploration and development companies during a rally makes sense. After reading a couple of drafts, she’s convinced and she is a very tough sell.

So enjoy the last few days of summer and get ready for a wild ride in gold and silver juniors. Results are on their way. A few good “intervals” and we could be seeing the 5x and 10x moves which make the junior market the most exciting in the world.

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