In light of the mini-gold rally we’ve had, I’ve been curious what some of the big names in junior investing are doing with it.
Buying? Selling? Think it’s going to last?
My first inquiry went to Rick Rule, Chairman of Sprott US Holdings. He was quick to get back.
And he was forthright as usual.
Rule had some familiar complaints on junior CEO expectations. He tends to say they treat their stock too preciously in this market, given their needs. He said that again.
But Rule also had specific points on what action he is taking:
1. “We have been allocating to juniors steadily for months, but we have lots of dry powder.”
2. “I have used the liquidity offered up in the last three weeks to sell some mistakes.”
3. “We are looking to allocate more aggressively in recap efforts, but this rally has made that impossible. The issuers believe happy days are here again, and have silly price expectations.”
Now, of course, you may be wondering if you bought his mistakes! He didn’t go into detail there.
Up next? We’ll see. I’ll update this series as (or if) I get responses from other important players in the junior market.
Note, we recently heard from Frank Giustra, a Canadian entrepreneur, on what kind of junior he likes in a gold market that turns (A Toothless Fed, But Gold Shares Have Bite).
More to come.