Gold Explorers: The Next Snowline?

If you haven't given up on the concept...

$2700 gold was supposed to light a fire under the mining stocks — especially the explorers whose “gold in the ground” would become dramatically more valuable, setting off an industry-wide takeover frenzy.

This (emphatically) has not happened. The big miners profited from higher gold prices, but the little guys, if anything, have done worse than when gold was $500 cheaper.

I recently dropped four especially disappointing explorers from our Portfolio and am watching several more for similar treatment.

But that doesn’t mean the concept of gold/silver explorers is fatally flawed. There are still big future winners out there, and the lure of a potential 10-bagger is as strong as ever. So here’s an explorer that looks like an earlier-stage version of one of our success stories. It had a nice run in early autumn, corrected a bit in November, and might be a buy at current levels.