Having determined the companies you are interested in, the next step is to assess the market and establish whether you are entering at an appropriate time. A company that stacks up well fundamentally can amount to very little if you get the timing wrong (At least in the short to intermediate term). We use technical analysis to assist us in determining suitable low risk market entry points. Please subscribe to our free newsletter for a monthly update on the precious metals markets. Mr Market and the Lemmings is an article I wrote a while back outlining the volatility and risk factors associated with market hype.
Another important aspect to consider is the availability of capital. Companies that are not at the production stage of the Mining Life Cycle are dependent on the markets to fund their activities. If there is a great deal of market uncertainty at any point in time, the funding for these activities becomes increasingly difficult and can put the short to intermediate term viability of the company under threat. During these periods of time it is better to weight your portfolios in the producing companies where the uncertainty surrounding the company's future is significantly reduced. During the better times where capital is easily accessible it is the development companies in the Mining Life Cycle that offer you better leverage to rising metal prices. At the end of the day, if a company has good quality projects and a responsible management team with a proven track record, it should be able to raise money during both good times and bad.