The junior resource stocks on Frank Holmes’ list have market caps of less than $350 million
Frank Holmes | November 12, 2020 | SmallCapPower: Gold ended the trading session down 4.41% on Monday, November 9, its worst one-day slump since mid-August, on promising coronavirus vaccine news.
(The following is an article originally published on usfunds.com on November 10, 2020)
Despite the selloff, the yellow metal has had an extraordinary year. Fueled by historic amounts of fiscal stimulus and negative-yielding debt, as well as economic and geopolitical uncertainty, the price of gold touched a new record high this past summer. As of November 6, it was up more than 28%.
Investors have piled into global ETFs backed by gold. According to the World Gold Council (WGC), October was the 11th straight month of net inflows into gold-backed ETFs, bringing total combined holdings up to a record $235 billion.
Besides investing in gold directly, many investors prefer getting exposure via gold mining stocks. And even then, investors have a range of choices, from the “seniors” (large-cap) to “juniors” (small-cap) to precious metal royal companies.
Below is a list of my favorite junior precious metal mining companies, the largest among them being Gran Colombia with a market cap of $305 million. All data is as of the close on Friday, November 6, and priced in U.S. dollars.
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