By Brendan Conway
The gold mining-sector is ahead on Monday, but not Market Vectors Junior Gold Miners ETF. Part of the reason, and a good lesson in the risks of small, speculative mining companies, is a stock called LionGold.
This company’s shares slumped 71% on Monday in a selloff that’s being attributed to the burst of a Singaporean smallcap bubble. LionGold and two other companies have lost a combined $7 billion in market cap since Thursday, Reuters reports, despite halts on the Singapore exchange to slow things down.
It’s notable that none of the coverage has, for instance, a reason why investors went sour on this gold stock now, as opposed to months ago. Here’s how the WSJ puts it: