Not all investors are flush
with cash to put into the natural resource sector and frequently we are asked
the question, "Dudley, how much do I need to get started"?
Perhaps your $5,000 to $10,000
will 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.
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 and many of these junior mining companies are very
low on cash.
Thus with 62% of the companies
on the TSX and the Venture Exchange selling for less than $0.20 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.
There are also many
interesting opportunities selling in the $0.30 to $0.50 range meeting our
high standards which can be added to one's portfolio.
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 will 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 thus giving investors more opportunities as well as
diversifying the risk. With the $10,000 dollars we would also include two
additional companies selling at higher prices and perhaps with current
production.
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For example with $5,000:
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|
A - silver
selling at $0.05
|
buy 25,000
shares
|
$1,250
|
|
B - silver
selling at $0.50
|
buy 2,000
shares
|
$1,000
|
|
C - gold
selling at $0.06
|
buy 25,000
shares
|
$1,500
|
|
D - gold
selling at $0.30
|
buy 4,000
shares
|
$1,200
|
|
Total
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$4,950
|
|
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For example with $10,000:
|
|
A - silver
selling at $0.05
|
buy 30,000
shares
|
$1,500
|
|
B - silver
selling at $0.50
|
buy 3,000
shares
|
$1,500
|
|
C - gold
selling at $0.06
|
buy 30,000
shares
|
$1,800
|
|
D - gold
selling at $0.30
|
buy 5,000
shares
|
$1,500
|
|
E - silver
selling at $1.00
|
buy 2,000
shares
|
$2,000
|
|
F - gold
selling at $0.75
|
buy 2,000
shares
|
$1,500
|
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Total
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$9,800
|
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As you can see 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 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.
Visit our website, www.JuniorMiningResources.com
for more information and to sign up for our email list and twitter account.
