18 Junior Gold Miner Picks You Can Steal From The World’s Greatest Investors

If ever there was an area in which to do the exact opposite of that which government and the media urge you to do, that area is the purchasing of gold.

— Robert Ringer

ETFs or Exchange Traded Funds are all the rage now. Theoretically they offer individual investors an improved investing experience over the traditional mutual fund. In practice things aren’t so crystal clear.

One ETF that’s a terrible vehicle to buy is the Van Eck Vectors Junior Gold Miners ETF (GDXJ). It is an exchange traded fund that is supposed to hold a large number of junior gold miners. It is a very succesful ETF and attracted a lot of investors. There aren’t enough junior gold mining companies to satisfy the demand from the ETF and therefore it recently started including larger gold mining companies.

My first complaint is that it doesn’t do what its name suggests: invest in junior gold miners. My second complaint that its success attracts so much capital into the underlying companies are pushed up in price. Meaning; you pay too much when you buy in now.

The fundamental problem is that an ETF can’t be more liquid than the shares of the companies that are inside of it. Many junior gold miners are not liquid at all.

What if you want to invest in the junior gold mining space and don’t want to do research on gold miners but understand enough to know buying the gold miner ETFs is a bad idea?

One solution is to ride the coattails of highly succesful value investors. Myers e.a 2001 have shown that copycat strategies work. There are several other studies indicating the same thing and it makes sense. After all, if you pick the same stock as a highly succesful investor why shouldn’t you make money too?

I screened a set of highly succesful managers who primarily invest for the long term. Every manager takes care of a portfolio over $1 billion in size. To make sure we only got juniors or small companies at least, I’ve excluded any picks $3 billion and above.

As an alternative to a gold miner ETF like the GDXJ, someone wanting exposure to this type of companies, could just buy a basket of Guru picks:

Company Symbol Market Cap Count Total Shares Gurus that own it
Eldorado Gold Corp EGO 1964.57 4 7646580 First Eagle Investment, Ray Dalio, Joel Greenblatt, Mario Gabelli, Ronald Muhlenkamp, Paul Tudor Jones
Novagold Resources Inc NG 1483.24 3 35426981 John Paulson, Seth Klarman, Murray Stahl, First Eagle Investments
Alamos Gold Inc AGI 2014.65 3 2314750 Donald Smith, Chuck Royce, First Eagle, Mario Gabelli
Iamgold Corp IAG 2390.44 3 49126853 Donald Smith, Jim Simons, Jeremy Grantham, John Paulson, Joel Greenblatt
New Gold Inc NGD 1724 3 19736570 First Eagle Investment, Donald Smith, Ray Dalio
B2Gold Corp BTG 2674.57 2 7900800 First Eagle Investment, Ray Dalio, Gabelli, Jim Simons
Asanko Gold Inc AKG 317.23 2 3018914 Donald Smith, Jim Simons, Mario Gabelli
Yamana Gold Inc AUY 2374.31 2 64562913 Donald Smith, Ray Dalio, John Buckingham, Joel Greenblatt
Osisko Gold Royalties Ltd OR 1338.37 1 3991137 First Eagle Investment
Primero Mining Corp PPP 65.36 1 17040961 Donald Smith, Jim Simons
Gold Resource Corp GORO 238.15 1 20659 Charles Brandes, Jim Simons
Comstock Mining Inc LODE 36.47 1 22233964 Arnold Van Den Berg, Chuck Royce
AuRico Metals Inc ARCTF 151.56 1 12628982 Donald Smith
Gold Fields Ltd GFI 3073.62 1 59780 Mario Gabelli, Jim Simons, Chuck Royce, Ray Dalio, Jeremy Grantham
Solitario Zinc Corp XPL 29.95 1 254040 Robert Bruce, Jim Simons
International Tower Hill Mines Ltd THM 90.13 1 55487842 John Paulson
Pershing Gold Corp PGLC 81.51 1 3251500 Donald Smith
Seabridge Gold Inc SA 685.54 1 1598207 Arnold Van Den Berg, Jim Simons

Disclosure: long THM and XPL

P.S. I really like the qoute at the top because I am sort of part of “The Media”