from WallStForMainSt
Jason Burack of Wall St for Main St did a short video about how dangerous junior gold and silver explorers are to speculate/investing in and some ideas how to safely play them. Most retail investors should avoid buying shares of an individual junior mining company because shares could drop 30% or more in only a few days if something goes wrong at the company. This could happen while gold and silver rise and frustrate people who picked out the wrong junior. Jason offers some ways to safely get exposure to juniors that limit the downside risk. Owning large positions in juniors requires enormous amounts of mental toughness and discipline and many retail investors lack the knowledge to figure out which juniors and good and which are riskier than others.
This new article on Seeking Alpha from Itinerant outlines some of the major risks buying individual junior miners and how if anything major goes bad the stock is guaranteed to crash by more than 30% very quickly: http://seekingalpha.com/article/40026…
Sandstorm Gold, Sprott Inc (almost a 5% dividend yield), GDXJ, SGDJ and SILJ are diversified baskets of junior stocks that are safer ways to play juniors.
Articles on Prospect Generator Business Model:
1) http://www.24hgold.com/english/news-g…
2) http://www.globalminingobserver.com/s…
3) http://rivres.com/index.php/investors…
4) http://www.aurionresources.com/s/pros…
5) http://www.transitionmetalscorp.com/i…
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