Saturday , 15 June 2024

Here’s How Best to Deploy $5-10,000 in the Gold & Silver Junior Mining Sector

$5,000 to $10,000 may not go far in buying the top companies on the NYSE or the Toronto Stock Exchange, but in the junior mining sector, you will be amazed what you can accomplish. You can actually buy thousands and thousands of shares. Yes, these are ‘penny stocks’ but the challenge is to uncover those companies which have the potential to perform well in the coming months. The risk is incredibly high but so is the potential reward. [Let me explain.] Words: 538

So writes Dudley Pierce Baker ( ) in edited excerpts from his original article* entitled Junior Mining Investing with $5,000 to $10,000.

This article is presented compliments of (A site for sore eyes and inquisitive minds) and (Your Key to Making Money!) and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.

Baker goes on to say, in part:

We have seen some recent studies that of the shares trading on the TSX and the TSX Venture Exchange, approximately 42% are trading at less than $0.10 and another 20% are trading between $0.11 and $0.19….[That being the case,]…investors have an opportunity to get started investing in this sector with a small amount of money.

Yes, these are ‘penny stocks’ and the challenge is to uncover those companies which have the potential to perform well in the coming months. The risk is incredibly high but so is the potential reward.

There are some great junior mining opportunities buried in those 2,000 companies which have some cash, great properties and good management but of course the ultimate challenge is discovering the special opportunities which have the potential to make you a lot of money, possible, 500%, 1,000% or more. This can definitely be accomplished with some research, attending conferences or following some of the top newsletters in this sector….

We could write volumes on how to find these opportunities but for now we would like to tell you how to invest in these shares once you have found them and [with] as little as $5,000 to $10,000.

First, we would spread these monies over a minimum of 4 to 6 companies. With $5,000 we would look to buy 4 positions in the junior mining sector and with $10,000 we would spread the money over 6 positions to possibly include two additional companies selling at higher prices and perhaps with current production thus giving investors more opportunities as well as more risk diversification.

For example with $5,000:

  1. silver company “A” selling at $0.05   –  buy 25,000 shares     $1,250
  2. silver company “B” selling at $0.50   –  buy 2,000 shares       $1,000
  3. gold company “C” selling at $0.06    –  buy 25,000 shares      $1,500
  4. gold company “D” selling at $0.30    –  buy 4,000 shares        $1,200

Total                                                                                                                $4,950

For example with $10,000:

  1. silver company “A” selling at $0.05   –  buy 30,000 shares       $1,500
  2. silver company “B” selling at $0.50   –  buy 3,000 shares         $1,500
  3. gold company “C” selling at $0.06    –   buy 30,000 shares       $1,800
  4. gold company “D” selling at $0.30    –   buy 5,000 shares         $1,500
  5. silver company “E” selling at $1.00   –  buy 2,000 shares         $2,000
  6. gold company “F” selling at $0.75    –   buy 2,000 shares          $1,500

Total                                                                                                                  $9,800

As you can see [from the above] we suggest you accumulate a basket of shares each of which has the potential to make you substantial gains but with the full awareness that not all of these position may work out. If only a few shares perform well you can still make a significant amount of money on these investments.

The [current] timing is perfect for all investors to get started in the resource sector. Most of the shares are trading at historic lows and most newsletters and analysts are expecting a banner 2013 for gold, silver and the shares. It’s time for you to get in the game.

Related Articles:

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