An Interesting Article Came across this article that I would like to share with you:
https://investingnews.com/when-gold-stocks-go-up/
I highlight a couple of paragraphs:
Clark said investment in mining is down across the board, noting that resource stocks are at all-time lows compared to the S&P 500 (INDEXSP:INX). In his view, that means the juniors provide strong opportunities for investors.
Overall, Clark believes juniors meet all three requirements for the “trade of the decade." He noted that the market has been completely decimated, that there is little investor participation and that it holds mammoth potential.
“Look at the last two years — the volume in the Venture Index has been completely left for dead, nobody is investing. The average right now is 400 million shares traded; the average in 2020 was 3.8 billion. So the volume of the Venture Index would have to go up nine times roughly just to match where it was in 2020,” Clark said.
He suggested that volume is so low that there isn’t really anywhere else the market can go.
With that in mind, Clark thinks the fuse is already lit for the junior sector based on the amount of money that has been moving into gold and has already shifted the fundamentals for producers.
Ultimately, he thinks this will cause a jump in mergers and acquisitions (M&A) of junior companies.
This does not mean that Abcourt will necessarily become a success story, but it shows what thoughts about the future of junior companies are being discussed within this sector. And if you do some research online, you will easily be able to find similar articles.
The potential is in any case present, and if the drilling shows good results, and the management makes the right choices going forward, this company can face a pleasant journey for investors.
You're allowed to dream, aren't you?
My opinion