From The Gold Report:
In order to make wise investment decisions, gold investors must coldly assess economic realities, says Eric Coffin. As the publisher of Hard Rock Analyst Advisories, Coffin tracks a range of gold explorers with the bling to weather the long capital drought. He has figured out how to separate the winners from the losers and, in this interview with The Gold Report, he shares the names of some strong ventures.
The Gold Report: In your January Hard Rock Analyst Journal, you remarked that 2012 "sucked" for precious metal investors. What happened?
Eric Coffin: Last year was a very difficult time for junior gold miners to raise funds and there has been no improvement in the financing environment yet in 2013. There were a few bright spots...
The companies that did well, and there weren't many of them, were new discovery stories. The epitome of the phenomenon on the HRA list was GoldQuest Mining Corp. (GQC:TSX.V), which shot from a share price of $0.07 up to $2 after its discovery in the Dominican Republic. It drifted down, thanks to the weak market and some weaker holes, but it now has a $15+ million ($15M) cash position to sustain it.
The basic problem is that with such a weak market backdrop, the financial sector is focused only on companies with strong management and proven projects. That's a very small subset of the explorers.
TGR: Are the small companies going to wither on the vine?
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