GOLDEN PHOENIX MINERALS (GPXM)

[pand2015]

GPXM-SAGD etc hopefully someone else
believes in junior miners ;)
Just for info - for DD
**************
Why 1,000% gains may be on the horizon
Sean Goldsmith
1 Comment|January 20, 2015
1,000% gains may be on the horizon...

Yes... the possibility of a 1,000% gain sounds absurd. But longtime investors in the junior resource sector have seen that kind of gain many times. This sector – which involves early stage gold projects, "all or nothing" oil-drilling ventures, and the like – is one of the market's most explosive sectors.

It only takes one bull market in junior resources to make you rich. When these stocks rise, they don't just double... they can make you five or 10 times your money... or more.

And that's no exaggeration. Just look at our "Hall of Fame" at the bottom of each Digest issue. It's the top 10 highest-returning closed positions in our company's history. Half of them – five – are junior mining firms.

Our top-returning position of all time is Steve Sjuggerud's recommendation of Seabridge Gold. It returned 995% in just more than four years.

The lowest return of the five junior miners in our Hall of Fame is 322% in a little less than two years.

As you can see from the five-year chart of the Toronto Venture Exchange – the widely followed gauge of small-cap resource firms – the past few years have been a brutal bear market for these kinds of stocks...

image: http://files.growthstockwire.com/images/Ha-38942945_1US2FVZNQ6.png



The resource markets regularly go through boom and bust cycles. Developing resource projects is hugely capital- and time-intensive. And because of this long timeline, the resource market can't adjust to supply and demand imbalances as quickly as other markets can.

In an educational interview we produced with resource expert Rick Rule titled "Mastering the Resource Market's Cyclicality," Rick explained...

When demand exceeds supply in most markets, you see a relatively quick reaction from producers to meet the new demand. Compare this to resources like copper or gold... Before you can produce it, you have to go find it and build a mine. The exploration cycle – the pre-development cycle – can take up to 10 years. In the meantime, prices can soar while the market waits for that increased supply.

Making things worse is that many companies will continue to produce resources even if they're selling below production costs... Because sometimes it's cheaper to lose money than it is to shut down a mine and start it back up again. Or a producer will keep producing, hoping its competition will go out of business. Then, when prices swing higher, that producer will be in prime position.

In the latest issue of the Stansberry Resource Report, editor Matt Badiali explained that you have the opportunity to make a fortune in junior resource stocks every seven years or so... You just have to wait for sentiment to hit an extreme low, or "wait for the crickets," as he

Read more at http://www.stockhouse.com/opinion/independent-reports/2015/01/19/why-1-000-gains-may-be-on-horizon#AlJ1WHQzrckBEwoq.99