As silver prices touch multi-decade highs, a senior mining analyst is sounding the alarm against rising investor exuberance, particularly in the junior mining space, which primarily consists of companies involved in the early exploration and development of mines.

Market Enthusiasm Could Unwind Rapidly

Appearing on the Resource Talks podcast on Saturday, Joe Mazumdar, who is a senior mining analyst at Exploration Insights, said he has become increasingly uneasy with the way some investors are valuing silver companies, pointing to what he described as overly simplistic.

“What I’ve seen out there recently that kind of rubs me the wrong way,” he said.

Mazumdar said a growing number of silver stocks are rising despite having little to justify the move fundamentally, as investor enthusiasm appears to be overtaking basic due diligence.

See Also: Silver Inches Closer To $85: Campbell Says Don’t ‘Buy Fresh,’ But Accumulate Dip As China Looks To Restrict Metal

“They haven’t had a lot of operational success, they’re carrying debt that’s due next year,” and yet the stock continues to rally along with the prices of silver.

He ...