(Kitco News) - Junior resource companies are starved for attention and undervalued, according to institutional advisor Jayant Bhandari.
Last week Bhandari spoke to Kitco Mining.
Gold has hit several all-time highs in 2024. Despite roaring metal prices, upside for the resource stocks has been limited. As of August 14, the VanEck Junior Gold Miners index is up 20% year to date while physical gold is up 17%. Bhandari said the market fixates on just the large gold miners.
"Junior mining companies are not followed by big investors," said Bhandari. "Mining companies tend to stay away from junior mining companies until the very last days, which means that junior mining companies continue to struggle with their valuation. They're just not [enough] people valuing those companies."
Bhandari said that gives him an advantage.
"I want to operate in a market where competition is limited, where not many people are chasing the same stuff that I'm chasing."
Regarding macroeconomic concerns and China, Bhandari is bullish. China is a vital market for all metals, but the country has posted months of disappointing economic data. Bhandari highlighted China's consistent growth and positive developments in consumer services, manufacturing, and infrastructure.
While acknowledging the political conflict with the West, he believes China is better positioned to handle deglobalization due to its strong manufacturing base.
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