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SilverGal
10-08-2010, 10:02 AM
Hi everyone! :)

This is my first thread posted, I'm not so sure if the gold forum is the right place to post this question but if it gets moved somewhere else pls mods, let me know so I can track this thread. Thanks! ;)

I just wanted to briefly ask if buying junior
gold mining stocks are a wise thing to do?
which stocks would you recommend or don't
recommend? What has been your experience? Any info on jr gold stocks would be very much appreciated.

Many many thanks!

oober
10-08-2010, 10:05 AM
Check this forum out.

https://www.kitcomm.com/forumdisplay.php?f=28

Arcturus
10-08-2010, 10:07 AM
Hi everyone! :)

This is my first thread posted, I'm not so sure if the gold forum is the right place to post this question but if it gets moved somewhere else pls mods, let me know so I can track this thread. Thanks! ;)

I just wanted to briefly ask if buying junior
gold mining stocks are a wise thing to do?
which stocks would you recommend or don't
recommend? What has been your experience? Any info on jr gold stocks would be very much appreciated.

Many many thanks!

Look into the Group Think thread and on the market pages there is a precious metal thread

AURUM
10-08-2010, 10:17 AM
This thread was moved from the gold forum.

SilverGal
10-08-2010, 12:23 PM
Thanks everyone :)

qantwar
10-08-2010, 03:10 PM
The juniors have the potential of higher gains, but are also more risky. A lot of juniors may not pan out, so be sure you know what you are doing before investing in individual companies. Also it is often said that you should not put all your eggs in one basket when it comes to juniors, and invest in a basket of 10 or so to mitigate the risk. Recently a new ETF focusing on juniors made its appearance: GDXJ. I highly recommend looking at it because it allows you to easily and cheaply (you only pay one trading fee, not one for each stock) buy into a whole range of juniors. Here is an extract from a report on GDXJ:

The bottom line is the new GDXJ Junior Gold Miners ETF offers investors a quick and easy way to get diversified junior-gold exposure. For casual investors, it eliminates key problems that have long plagued junior-gold investing. These include the serious challenge of researching to separate the high-potential junior golds from the dross, and buying junior golds outside the US where the great majority of them list. GDXJ also really reduces transaction costs for a casual diversified junior-gold deployment.
This investor-friendly junior approach will also radically impact junior golds themselves. As more capital floods into this tiny sector via this new GDXJ conduit, junior-gold stock prices will rise. The higher their stocks, the easier it is for these companies to raise cash through equity offerings to advance their projects. By linking juniors to potentially vast new pools of stock-market capital, GDXJ will revolutionize this sector.http://www.safehaven.com/article/16228/gdxj-junior-gold-etf

Having said this, if you have no exposure to gold/silver whatsoever, I would recommend looking at the majors also. They are trading at about the same levels as they were at the highs in 2008 before the crash, when gold was close to $1000. Now gold is 30% higher, so the gold stocks have at least that much to move (and probably a lot more). Usually, a gold move is followed first by the majors, then the juniors when the majors seem expensive to investors. So it's good to have a mix of all three, and be patient with the juniors. (The GDX ETF is a good proxy for the majors)

Will Wong
10-09-2010, 02:15 AM
Hi everyone! :)

This is my first thread posted, I'm not so sure if the gold forum is the right place to post this question but if it gets moved somewhere else pls mods, let me know so I can track this thread. Thanks! ;)

I just wanted to briefly ask if buying junior
gold mining stocks are a wise thing to do?
which stocks would you recommend or don't
recommend? What has been your experience? Any info on jr gold stocks would be very much appreciated.

Many many thanks!

Have you visited our thread on Miners Due Diligence Center (MDDC)?

You might find some answers.

Will