| Junior gold miners have been beat up as much, if not | | | | in the sector. But in the last quarter of 2008 |
| more than the rest of the market. With gold holding | | | | NovaGold reported that they couldn't renew a credit |
| its ground and the combination of growing economic | | | | facility due to frozen credit markets. The share price |
| uncertainty with probable inflation ahead, these gold | | | | dropped from $3.33 to under $.50 in four weeks, |
| stocks may be poised for massive stock market | | | | closing down as much as 65 percent in one day. |
| gains that you can profit from. | | | | Selling was certainly a prudent thing for investors to |
| Although gold has held strong and is back above | | | | do, or was it? Was this a time when the fear level |
| $900 per ounce, these small exploration companies | | | | was so high that the selling was overdone? NovaGold |
| have seen their stock prices drop to the tune of | | | | has since been able to replace their credit facility and |
| seventy to eighty percent. Many of these stocks | | | | the stock has risen to around $3.50 per share, a |
| have recently doubled from their lows and are still | | | | seven fold gain for whomever bought at the lows |
| down substantially from highs they enjoyed at lower | | | | under $.50. |
| gold prices. This is most likely due to the almost | | | | There are plenty of other junior mining stocks that |
| non-existent appetite for risk that is currently | | | | were trading in the two to four dollar range just less |
| reflected in the markets. | | | | than a year ago and are currently trading for under a |
| The lack of financing available has made these | | | | dollar. Some of them are actually producing gold, and |
| already speculative investments less attractive, but | | | | selling it at a profit. While these are speculative in |
| this may have been overdone. An example of this is | | | | nature, doing your own research and not putting all |
| an company based in Alaska NovaGold. They sit on a | | | | your eggs in one basket is important. But if gold |
| massive quantity of gold reserves in the resource | | | | continues to stay strong and rises beyond the |
| rich region and have partnerships with Barrick Gold, | | | | all-time high of around $1,030 per ounce, there could |
| one of the largest and most well funded companies | | | | more triple digit gains in this sector. |