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Bullboard - Stock Discussion Forum New Found Gold Corp V.NFG

Alternate Symbol(s):  NFGC

New Found Gold Corp. is a Canada-based mineral exploration company. The Company is engaged in the acquisition, exploration, and evaluation of resource properties with a focus on gold properties located in Newfoundland and Labrador, Canada. The Company holds a 100% interest in the Queensway Project, which comprises an approximately 1,662 square kilometers area, located about 15 kilometers (km... see more

TSXV:NFG - Post Discussion

New Found Gold Corp > Gold Juniors in previous bull runs
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Post by megacopper on May 24, 2021 7:41am

Gold Juniors in previous bull runs

Just have a look at what the gold juniors did in the late 70's when gold soared to $850 early in 1980. 


https://www.bullionvault.com/gold-news/junior-gold-031020142

 

 
If you had bought a reasonably diversified portfolio of top-performing gold mining juniorsprior to 1979, your initial investment could have grown 23 times in just two years. If you had managed to grab 80% of that move, your gains would still have been over 1,850%.
 
This means a junior priced at $0.50 today that captured the average gain from this boom would sell for $12 at the top, or $9.75 at 80%. If you own ten juniors, imagine just one of them matching Copper Lake's better than 100-bagger performance.
 

 

Here's what returns of this magnitude could mean to you. Let's say your portfolio includes $10,000 in gold juniors that yield spectacular gains such as the above. If the next boom cycle matches the 1979-1980 pattern, your portfolio could be worth $241,370 at its peak...or about $195,000 if you exit at 80% of the top prices.


And below was another bull run in the mid 90's. 

 

 
Many analysts refer to the 1970s bull market as the granddaddy of them all – and to a certain extent it was – but you'll notice that the average return of these stocks during the late '90s bull exceeds what the juniors did in the 1979-1980 boom.
 
This is akin to that $0.50 junior stock today reaching $19.86...or $16, if you snag 80% of the move. A $10,000 portfolio with similar returns would grow to over $397,000 (or over $319,000 on 80%).

Comment by CountOfMeltedCrisco on May 24, 2021 8:56am
Those were halcyon days, to be sure.  For people who have never seen a PM bull such as that one, the disbelief is understandable.  The one about to unfold will make that one seem like a warm-up act to a warm-up act. 
Comment by ronreagan on May 24, 2021 9:00am
Thanks for these charts, Mega - good persepctive on the potential upside!
Comment by oldfx1 on May 24, 2021 11:27am
This post has been removed in accordance with Community Policy
Comment by ronreagan on May 24, 2021 11:36am
Feel free to make a capp on NFG. Do you have the courage? Oh, I forgot, you'll only make a call AFTER the fact. And don't get mad and throw the whiskey bottle through the window.
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