Gold had a great 2009 and many investment analysts are calling for an even better 2010. We want our members to profit from this gold bull by investing in some junior miners. This link is a great primer on different gold mining terms which you can use to evaluate the junior miners potential.
http://www.commodityonline.com/news/Guide-to-investing-in-gold-and-gold-stocks-24388-3-1.html
There are many reasons to buy gold. Some of the most obvious include the decline in the USD and the fact that the world is not making any more gold. The biggest reason though is the talk of backing worldwide currencies with gold reserves. If that were to come true, gold would climb to unheard of heights.
http://www.moolanomy.com/2282/investing-in-gold-a-case-for-why-you-should-buy-gold-now/
We choose to play the rally in gold by buying into junior miners because they hold the most promise for upside. If you get a mineral hit or a significant acquisition, your junior mining stock can go crazy.
EFG on the TSXv is a recent example of a junior miner soaring in value after a recent find.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b251322317
The explosion in price on EFG was in conjunction with an explosion in volume. Anyone who bought in early made a killing.
CZH which is also on the TSXv jumped from .375 to $1.25 on January 15, 2010 on acquisition news.
http://www.stockhouse.com/Community-News/2010/Jan/15/Junior-mining-stock-pops-on-copper-gold-purchase
Again the volume exploded on the news and those who were in early made a fortune.
Beyond the short term upside of a find or acquisition, you can get long term upside when your junior miner finds a long term partner in the form of an established mining giant.
http://seekingalpha.com/article/27435-junior-mining-companies-other-peoples-money
If these mining giants really like the deal they can even buy the entire company and make millionaires out of anyone who buys at the beginning. A great example of this kind of action is Arequipa Resources. Barrick Gold Corp (NYSE) took over Arequipa in 1996 for $800 million and the stock went into outer space.
http://www.nytimes.com/1996/08/30/business/for-canada-s-brash-young-mining-companies-that-pot-gold-may-depend-acquisitions.html?pagewanted=1
PSC is sure we have found a winning junior mining pick which fits all of the criteria of a potential big score.
We are putting DGRI on watch @ .144. The stock has been in rally mode for almost two weeks. The recent low was .10 so anyone who is buying at these levels is still getting a great price.
There is a fist full of reasons to buy DGRI.
1) There is already $9 million in the project. That is real value.
2) The recent 43-101 shows that they have 2.8 million ounces of gold in reserves. Again that is real value.
http://www.stockwatch.com/newsit/newsit_newsit.aspx?bid=U-i0582111-U%3aDGRI-20100129&symbol=DGRI®ion=U
3) They have a world class management team. Execution is key in the junior mining business.
4) They are going to list on the TSXv in Canada which is the biggest mining finance market in the world. This new listing will attract institutions.
We think it is only a matter of time before DGRI gets the attention of a mining major.
DGRI IS WAY TO CHEAP AT THESE LEVELS.
PSC IS LOOKING FOR A TRIPLE FROM THESE LEVELS.
Please remember to do your due diligence on DGRI.
For more information on DGRI, please join us on our website.
the article is originated by pennystockchaser.com
