Although there have been a few bright spots as gold reached $1,275 by January 26, the ‘bonfire of the juniors’ has yet to occur.

Mine closures could squeeze supply, initiating another long-term up move, but at a high cost to producers.

Markets have over-emphasized the US oil and gas boom at the expense of Canada’s oil and gas producers. That means there could be room for stocks in this sector to grow, especially if oil producers in the US fail to keep up their rapid pace of production increases.

This could be the ‘bifurcation’ point that we have been looking for, says Eric Angeli, an Investment Executive at Sprott Global Resource Investments Ltd.

Despite the huge importance of the sector to Russia, and the vastness of its resources, the sector is notoriously poorly managed.

Rick Rule, Chairman of Sprott Global Resource Investments Ltd., says some of the ‘big money’ that was circling the resource sector has finally found a home.

Your willingness to buy a stock should not be diminished by the fact that it has fallen in price. In everyday purchases, we want to buy things that are selling at discounts. In investing, people tend to prefer stocks when they are expensive and hate them when they are cheap.

Mishka Vom Dorp, who joined Sprott Global Resource Investments Ltd. in 2008, explained why he believes precious metals have sunk – and where they are headed next.

As Rick explains, bear markets provide the upside that contrarian investors should seek.

When you have something as big as the monetary system itself going through its potential death, you have a lot of volatility. That can work for you to the upside and the downside.

Juniors usually raise cash to keep their operations going by issuing new shares.

It has been a difficult year for silver investors with the metal falling by 36% year-to-date.