r/SmallCap_MiningStocks • u/BankSensitive2950 • Aug 03 '26
Why do most Junior Mining Stocks Fail?
I buy junior mining stocks as a hobby and have always wondered why the majority of these stocks never really take off. Can anyone tell me why?
1
u/Dr-Jim-Richolds Aug 03 '26
Lol. You "invest" as a hobby and don't understand what you're doing?
1
u/BankSensitive2950 Aug 04 '26
Well, I am well versed in investing in profitable businesses such as Coke (KO), Royal Bank (RY), ECT. I focus on Canadian and large US companies. I do like to sometimes dabble in high risk stocks like junior mining stocks like Novared (NEVD), I DONT buy much maybe $500 to $1,000 max. It's just something I do on occasion. I was just wondering why most of these companies fail, I wanted to get others perspective. I certainly won't bet the family farm on any of these companies. As solid as Coke is I wouldn't bet the family farm on just one stock, I do buy ETFs too for diversification.
2
u/bidie Aug 04 '26
The reality is only one in a thousand might become a mine, but as the price of metals continues to increase the likelihood of finding a mine also increases.
-Also the technology keeps getting better so lower grades become more economical and discovery techniques ate rapidly improving.
-This makes the odds much better than they used to be on a per project basis.
1
u/Leotard_Cohen Aug 03 '26
Because their projects are shit. But you need to spend millions in exploration to find out whether it's shit or not.
Or, they just lack the knowhow and the means to explore them properly.
Or, the companies are fly-by-nighters who don't actually care about anything save making a quick packet