The Gold Report recently spoke with market analyst Lawrence Roulston who identified his top picks of undervalued gold juniors with promise.
Roulston told The Gold Report:
Most of the gold in the world is held for the long term. Only a small portion of total gold holdings is actively traded. Short-term price fluctuations are largely the result of traders reacting to news. A long-term chart of the gold price tells the real story. Gold is trending higher and there are short-term fluctuations, but the long-term direction is obvious.
The important message is that the long-term outlook for gold remains extremely bullish. The gold producers have an ongoing need to replace reserves, and they want to grow their businesses. That’s the basis for viewing the exploration and development companies. You’re going to beat yourself up trying to figure out what the next short-term move is going to be in the gold price, but if you take this long-term uptrend seriously and look at the companies developing deposits that are likely to be taken over by the larger companies, that’s a much better way to play the gold market.
Roulston recommended several gold juniors to investors:
Companies that are working toward adding value on existing deposits include Kaminak Gold Corp. (KAM:TSX.V), which is drilling a deposit in the Yukon. It will be putting together its first resource estimate later this year. People are going to be very pleased when they see the size of it.
Paget Minerals Corp. (PGS:TSX.V) and its joint partner are working on a very substantial situation in British Columbia. It is a discovery from decades ago that was put aside. Paget reactivated it.
Pretium has outlined 17 Moz high-grade gold ounces on its Brucejack property in British Columbia. The world had seen Brucejack as being a large but low-grade deposit, and the company was able to go in and identify a very substantial, high-grade portion in that deposit.
New Gold Inc. (NGD:TSX; NGD:NYSE.A) is conducting probably the biggest exploration program in the world at the moment on its Blackwater project in British Columbia. That opens up a whole region where there are a number of juniors looking at other deposits or other prospects that might look like Blackwater.