JJPFF - Exploration-Stage Mining Stocks Offer No Leverage To Metal Prices
2024-06-14 04:38:00 ET
Summary
- The purpose of this piece is to address the misconception that the stocks of small, exploration-stage mining companies offer leveraged exposure to changes in metal prices.
- The reason that the stocks of exploration-stage juniors are often viewed as providing leverage to metal prices is that the general desire to speculate tends to rise during upward price trends and fall during downward price trends.
- We expect that as the cyclical bull market in gold mining stocks becomes more obvious, the general desire to speculate in gold mining stocks will start to ramp up.
Editor's note: Originally published at tsi-blog.com on June 14, 2024
[This blog post is a modified excerpt from a recent commentary published at www.speculative-investor.com ] ...
Exploration-Stage Mining Stocks Offer No Leverage To Metal Prices