Is Junior Gold the Way to Go?

Author: Frank Holmes
Date Posted: February 11, 2014 Read time: 2 min

Jim Goddard welcomes Frank Holmes to “This Week in Money” to discuss gold and junior miners. Here’s an excerpt of the discussion where Frank talks about how oversold some junior miners are.

The Vancouver Stock Index (S&P/TSX Venture Composite Index) is correlated with the HUI Index, and that’s the big-cap gold index, and those two fell for almost three years; you’ve had a drought.

And what we like to write about is when you see those long declines, those multi-year declines, go over several years of data and they’ve never happened for 4 or 5 years. It’s usually 2 years and then you get a bounce, 3 years is very rare, and so that’s why I wrote a piece on January 27, called Why the Recent Lift in Junior Miners Will Likely Continue.

Will it take off dramatically up? No, but I think a lot of the negative selling and emotional dumping has taken place… We think some of these factors will change this year, because they [the markets] are just so severely oversold.


Listen to the entire interview now.


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