Junior Explorer/GDX Ratio Still At Historical Extremes...Will Explorers Be Rocketing Higher Next?

Friday September 28, 2012 10:26

The junior resource exploration market still offers an entry at disaster level pricing. The ratio of GDX to many junior exploration plays is varying between 500-800 to 1, while in the previous 3 years, the average was about 100-200 to 1. In my opinion, this moment may be a twilight, the slow and precise tipping-point moment in which the explorers edge up ever so slightly---right before a historic boom. What I mean by boom, is many of these companies moving up in price by 200%-400% in a matter of days, weeks and months. We saw this type of action occur following the 2008-2009 crash, and we will see it again.

http://www.kitco.com/ind/Tekoa_Silva/20120928.html

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As I have mentioned before, Silverado Gold Mines is ahead of most of the gold mining pac with its 'Daily' chart turned right-side-up!!! The big boyz, the technical & momentum traders= The big guns!!! are more willing to buy and hold a stock when the chart is turned right-side-up and the 20 DMA line is the NEW support/floor, VERY-VERY bullish pattern!!!