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Junior Gold Stocks on the TSX Venture

October 20, 2010 – Comments (2) | RELATED TICKERS: RAND , SA , GLD

Everyone knows gold has moved quite a bit. Some gold stocks like RAND look pretty darned expensive. I think its a perfect time to move to the juniors on the TSX because many of them haven't moved that much and some of them are near 52-week lows. The dynamics of the gold explorers are as such. No matter what you have, if your stock is cold, speculators will sell it in favour of the next hot thing. We are no where near a gold bubble, because if we were all the TSX juniors would be trading like the tech stocks did before the 2000 bubble burst. If you're not going to invest in juniors, at least follow a few so you have an idea of where gold is headed. When I can list on the TSX Venture Exchange and say I'm looking for gold in my backyard AND my market cap reaches over $10M, that's when we're in trouble as gold bugs.

As the price of gold rises, look for many of the TSX juniors to be bought out. Consolidation will be the name of the game as the big boys have the funds to dig all the gold that these companies sit upon. Kind of like SA without the billion dollar market cap.

Here's some links to 2 articles I wrote about the Venture Gold industry:

Part 1

Part 2

Part 1 is some general things to look for, part 2 is specific examples of certain junior gold stocks that I follow to give you an idea of what to look for, without officially recommending anything specific so the reader can research some companies themselves. I write on this site to appeal to a wider audience so its kind of like an investment for dummies approach so anything I write on the site isn't going to be as in depth as I get on here.But if you're interested in looking at other articles of mine, the link is here.