Good Morning!

Everyone is making money now. Good! 

Making money in a junior mining bull market is the easy part. 

Knowing when and how to sell is the hard part. 

Don't want to lose your gains in junior gold and silver stocks?

Then pay attention to the 5 factors below that will help you determine if it's time to trim the position (sell partially) or even sell the entie thing.

But first, subscribe to TheDailyGold Premium.   

1) Assess the company's current fundamental value

This is subjective but a good analyst can do this. 

What is the company's value, right now? Not in 1-2 years, not at $50 Silver or $5000 Gold. Right now? 

What will they cash flow in 2025? What is their project worth right now? 

Use economic studies to help measure value. 

Also, and this could be a 1-B, how does the company's current value compare to other companies? 

When you have a company that is overvalued relative to a group of other companies (like the others in your portfolio), that is a signal.

2) Assess the company's outlook and value over the next 12-18 months.

Again, a little subjective and there's less predictability with explorers and developers. 

The greatest re-rating comes from building a mine. 

Is the company approaching a re-rating? Or did it already happen? 

Is a company on the cusp of a significant discovery? 

Does the company have lots of cash that it will put in the ground over the next 12 months? 

We don't want to sell if a company has a good chance to add significant value over the next 12 months. 

At the same time, we want to take profits if the company's value is maxed out for the time being.

3) Assess the company's stock chart

This is easy. 

Has it just broken out of a base? (Don't sell or trim)

Is it way above short-term and long-term moving averages and looks like a rhino horn? 

Has it been a 3 to 5 bagger already?

Sponsor Companies

Equinox Gold, which has had struggles has completed its merger/acquisition with Calibre Mining.

The company has potential to grow production 60% in 2026 and is trading at a very low valuation (due to past missteps). 

Calibre are known as elite operators and intend to get the Greenstone Mine ramped up to nameplate capacity and ramp up the Valentine Mine to nameplate capacity in early 2026.

Chairman Ross Beatty has bought over $1.5 Million in stock in the market in recent weeks. 

GoGold Resources (GGD.to, GLGDF) is currently a small Silver producer with a pipeline of two development projects. Its CEO Brad Langille owns a large position in the company and has a very strong track record.

The company is attractively priced and in position to produce 9M oz Silver-equivalent/year in a few years, with another development project that could take it to 16-17M oz Silver-equivalent.

The stock doubled since we called it a buy on December 22, 2024. It is emerging from a complex bottoming pattern, which projects an upside target of C$2.60.

For more analysis of these companies and many more companies, subscribe to TheDailyGold Premium.

4) What % of your portfolio the stock

This is the easiest call. 

In a diversified portfolio, if a stock is more than 10% of the portfolio, it's likely time to trim. It doesn't mean you need to automatically cut it to 9%. But you do need to trim. 

If the stock becomes too big relative to your entire portfolio, you need to cut back to reduce your risk. 

Even if you sell 1/3, you still retain most of the position, while reducing your risk. 

If the stock is a sure fire takeover target, then be careful about trimming. 

If its a pre-discovery drill play, you have big gains and you don't know what to do...immediately sell 1/3. (I am 0 for 2 on this and lost big gains both times). 

If its a legit, high-quality company, you have big gains, know its going higher later and you are torn... sell 1/5 or 1/4.

5) What is the outlook of the sector?

My view is the sector could have another leg higher before an intermediate-term correction sometime in 2026. 

Breadth indicators are hot right now but not quite yet at that extreme that indicates we should be trimming aggressively. 

The outlook for the Gold price, Silver price and breadth indicators for the stocks answers the question. 

Watch the 20-day EMA of new 52-week highs to see if there is a blow-out to the upside. Interim peaks can form with exhaustion buying like that or from divergences that form soon after a blow out. 

I don't see either right now. 

Right now GDX is at the same level it was 3 months ago when the 20-day EMA of new 52-week highs overheated. Its very similar for GDXJ (I have proprietary data). 

The sector is correcting through time rather than price.  

So far I have done some light trimming but only rotated the capital around to better values.

In TheDailyGold Premium....

TDG #943 was a 21-page update published very late Sunday night with a focus on Silver.

For the first time we included a full table of our Top 10 Silver Companies.

The update included our first report on one of those companies. 

We also commented on our two favorite smaller silver stocks (sub $85 Million market cap) which we think have a shot to meet our 3 criteria for silver projects. 

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Thank you for reading.

I wish you all the best in 2025 and beyond.