The Real Value of Gold in the Ground
By GCRU Gold News on Tuesday, June 2 2015, 22:28 - Permalink
Venture always flows where potential reward is perceived to have the lowest risk. In my opinion, advanced explorers and developers often offer the best risk/reward profile in the junior resource market.
There is a plethora of companies to choose from in all segments of the resource sector. For any speculator, the challenge is to separate the many pretenders from the very few contenders. This is an especially daunting task for the retail lay investor. In this musing, we provide insights based on decades of experience evaluating companies and their projects. We examine a 24-year takeover history of advanced gold explorers and developers to determine the real value of gold in the ground and develop a set of criteria for assessing any company and its flagship project for investment. Analogous to the major miners, we find that the quality of ounces of gold is far more important than the quantity of ounces.