There is an interesting article in Investor's Digest this week, in which the columnist (John Embry) points out that the Junior Gold Mine stocks have not rode the gold wave that the larger companies have. According to the columnist, one U.S. fund manager calculated that juniors are trading "8 standard deviations lower than where they should be based on the current gold price.

He goes on to say that he has heard from "reputable sources" that the US hedge funds are shorting juniors against seniors, and that a lot of that shorting is naked.

Perhaps a similar situation is at play here?

Cheers,

Bluenoser