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June 2, 2016 | Junior Precious Metals Miners: Go With Who You Know

John is author or co-author of five books, including of The Money Bubble, The Collapse of the Dollar and How to Profit From It, Clean Money: Picking Winners in the Green-Tech Boom and How to Profit from the Coming Real Estate Bust. A former Wall Street analyst and featured columnist with TheStreet.com, he currently writes for CFA Magazine.

The first few months of this year gave a little taste of what’s to come for the junior precious metals miners, if this is indeed the start of a new gold/silver bull market. Some sample charts:

Great Panther June 16

KLDX June 16

GORO June 16

There were dozens more like this, obscure little miners that soared when investors concluded that maybe they weren’t going bankrupt after all. Most have corrected a bit this month, but that just sets the stage for the next, much longer and steeper run once gold and silver resume their upward march.

But while it’s true that this kind of rising tide will lift all boats for a while, the biggest winners will be the best companies, which brings us to the eternal junior miner question: How do you tell the 40-baggers from the bankruptcy candidates when they’re all going up?

The imperfect but useful answer is to go with who you know. Management teams with a history of success tend to repeat that success. Not every time, but significantly more often than teams with less consistent records — or teams that are trying for their first big win.

With that in mind, Future Money Trends just released an interview with Keith Neuemyer, the man who built First Majestic Silver into a major force and is now gobbling up a portfolio cheap but promising properties for his First Mining Finance start-up. Here’s First Majestic’s chart (it actually outperformed the juniors in 2016’s first three months), followed by the Future Money Trends interview:

First Majestic June 16

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June 2nd, 2016

Posted In: Dollar Collapse.com

One Comment

  • Avatar Fred Roberts says:

    Worth noting that Keith was buying up FF shares hand over fist when they were in the low 30c range, if you were watching on canadianinsider.com …

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