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A mining bull market may be around the corner; here is how to prepare

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(Kitco News) - It’s only a matter of time before junior miners’ performance catches up to precious metals, as mining stocks tend to lag a consolidating price rally, said Jonathan Guy, Director of Mining Research at Numis Securities.

“It all takes time. The gold price is the thing that moves first, but people want to see that the move is real before they commit new money to the sector, and I think there’s probably a three or four lag between the gold price moving and investors wanting to put new money into the specialist funds,” Guy told Kitco News on the sidelines of the Precious Metals Summit in Beaver Creek.

Guy noted that unlike last year, value in investments may not be found in Australia.

“Where I think there’s perhaps less value at the moment is in the Australian market, where we’ve seen a lot of the Australia markets running very, very hard, typically trading at two to 2.5 times price to NAV. I’m not sure that’s a market you should be putting new money to work,” he said.

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