Tuesday, June 19th, 2018

Junior Gold Stocks: Investing In Small Cap Gold Mining Shares

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Investing in junior gold stocks is one way to gain speculative exposure to any potential rise in the price of gold. There are many junior companies traded on various exchangers around the world. The US, Canadian and Australian stock exchanges have many small cap gold stocks that have the potential for large appreciation gains. Gold exploration takes capital expenditure in order to prospect for proven reserves. There are many more junior gold stock companies that do not have proven reserves and that will require capital to finance their activities than good companies that have a solid chance for success. If you are going to reap a return on your investment then you will need to have the ability to develop a successful approach to picking stocks that have a high probability of making a return. Locating companies that have the potential to become gold producing stocks is ultimately your aim.

How to locate Junior mining gold stocks for suitable gold stock investing

One of the best ways to get ground floor insight into good potential candidates is to subscribe to a newsletter that focuses on gold sector stocks. These publications tend to be geographically specific and are specialists for a particular region. The advantage of these publications is that you get the benefit of industry experience from professionals who spend their time investigating gold mining stocks. These services often rates stocks according to their speculative risk and some offer trial periods.

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Screen for your own Junior gold stock candidates

If you are the diligent research type you can locate a stock screening website and screen for specific candidates. Junior gold stocks tend to have a lower market capitalization than gold producer stocks. An example of a screening site is stockfetcher.com. You can locate the gold mining industry under the screen interface to review charts on gold mining shares. If you like to apply technical filters this site and a myriad of other sites provides the capability for you to review different indicator combinations.

Conduct additional research on gold companies stocks

If you like to perform fundamental forensics then a review of a companies financials is always a prudent move before committing to the investment. You can often locate the most recent news releases and reports at either the stock exchange where the company is listed or by doing a search for the listed companies website. If you are not experienced at conducting this type of research then review this article [1] for some great insight on the types of questions you should be asking before you commit your funds.

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References:

[1] Daily Reckoning: Junior Gold Stock

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