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After peaking in 2020, gold went into a sideways trend. It re-tested the highs in 2022, then collapsed, then bottomed out later that year. Since the bottom in 2022, gold has been rising with strength, most noticeably since the second half of 2023.

However, gold is about to go into the final year or so of its secular bull market, the strongest segment of the bullish cycle. Gold is very likely to turn parabolic. Although betting on gold or silver directly should deliver “alpha” performance/results, the space within the gold universe that is poised to rise the strongest are the miners, particularly the junior miners.

Avino Silver & Gold Mines Ltd. (ASM)

Consider that gold’s senior miners have been on the rise for the past year. My speculative recommendation this time last year was Alamos Gold Inc. (AGI), an awesome mid-tier producer that rose around 45%, outperforming gold itself by 50% in the same timeframe.

The rise in senior miners is a strong indication of a strong bull market within the gold universe. However, in a perfect setup, similar to where we are today, junior miners tend to outperform everyone.

When looking at the junior miner space, I like to consider many different things. They ultimately tell me if a junior miner has the potential to start developing and producing gold or, at the very least, is positioned to get bought out by a major gold producer.

I like junior miners who are producing, even if they struggle to make ends meet as they develop their mining operations. With ASM, keep in mind that Mexico is the largest producer of silver in the world today. ASM is already producing silver and still has lots of reserves to uncover.

If, as the set up suggests, gold is to go into a hyperbolic stage, the junior space is where you want to be.

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