beegdawg007

Junior Gold Miners Are Dirt Cheap

Good post. Thanks for the info and research. One comment in regards to your statement that many of the junior gold miners are trading below book. That is true, but it is true because the asset valuation is based on the price of gold when the companies acquired the right to mine a given area. If the price of gold were to drop a lot.. which could happen in a deflationery environment... the assets for many of these companies would actually fetch a far lower price than is their current book value. That of course is relavent because the theory behind buying a stock based on a BV of less than 1 is that, even if the company is liquidated, the stock would make money.