3561 days ago
Gold has declined slightly, from around $1,320 to $1,300, in the last few weeks. Rick Rule of the world’s leading resource investment group Sprott recently suggested that this was normal for a recovery in resource stocks. You expect gradual rises and subsequent consolidations. He has now explained the three big drivers for a recovery in the ‘junior’ resource stocks.
The market for junior resource stocks, as you can see from the performance of the TSX.V, the ASX, and the LSE AIM, marked a bottom around a year ago. They’re in a gradual recovery now, and I believe the uptrend will continue, albeit marked by the same volatility that we’ve seen in the market so far. We’ve experienced three advances and subsequent declines this calendar year – and that’s normal for the early stages of a resource recovery. These advances need to consolidate, which they have already done nicely.
There are three key drivers to this advancement.
