by Pater Tenebrarum, Acting Man:
Opportunities in the Junior Mining Sector
Maurice Jackson of Proven and Probable has recently interviewed Jayant Bandari, the publisher of Capitalism and Morality and a frequent contributor to this site. The topics discussed include currencies, bitcoin, gold and above all junior gold stocks (i.e., small producers and explorers). Jayant shares some of his best ideas in the segment, including arbitrage opportunities currently offered by pending takeovers – which is an area that generally doesn’t receive much attention, but seems to harbor quite a bit of potential.
The interview dovetails nicely with something we are working on at the moment and plan to make available to our readers soon, namely a comprehensive list of gold and silver juniors (plus a few base metals juniors), which summarizes the most important background information on them and provides links to more in-depth data for further study. The list should serve as a useful starting point for anyone planning to create a broadly diversified portfolio focused on junior gold companies.
As far as we can tell, Jayant prefers to pursue a more concentrated approach, while our list is basically about obtaining exposure to the sector’s potentially large upside, while at the same time mitigating risk through diversification (this approach lowers risk but also caps upside potential to some extent, but will no doubt be quite useful for people who would like to invest in the sector but don’t have the time to analyze and follow it in depth. We should also mention that we do not believe that the currently available junior ETFs are good substitutes for a carefully chosen diversified portfolio focused on the sector). Of course, even if one is just looking for ideas, the list will undoubtedly be helpful and save a lot of time and effort. We will discuss the philosophy behind our approach to investing in the junior sector in more detail once the document is ready for publication.
Without further ado, here is Jayant talking about his investment style and his current investment ideas in the segment (incidentally, they are complementary to ours):
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