from King World News
One of the greats in the business says there is a huge opportunity as mining stocks are now at one of the cheapest valuations he has seen in. 30 years.
December 15 (King World News) – Peter Grosskopf, CEO of Sprott Asset Management: Investing in gold and silver mining companies is challenging but offers substantial rewards. Of all the sectors I have covered, it is hands-down the toughest area in which to perform. Nevertheless, astute investors have been able to amass substantial wealth by owning and trading gold mining equities.
The reasons why the gold equities sector is challenging are numerous. It is a small sector by any standard. We estimate that the aggregate market capitalization of the world’s top precious metals miners and royalty companies is approximately $300 billion (Figure 1). At this size, it cannot sustain the attention or volume requirements of the world’s larger asset managers. The aggregate value of the up and coming gold miners is so small that position sizes become illiquid even for smaller investors.