Gold v juniors
posted on
Feb 22, 2008 02:10AM
Here is my view which I am backing up with my investment decisions, the physicals are in a bit of a speculative frenzy at the moment, hedge funds with a lot of leverage are doing the buying. Meanwhile as we know the gold stocks are under performing with the juniors lagging again. I am in the process of selling all my physical gold and silver bought at 400$ and 6.5$ and as the funds come through I will be allocating to my favourite juniors. The way I see it, if there is one last bout of stockmarket correction and or commodity correction, the physicals and senior stocks will take the hit but the juniors should be ok with maybe some short term down draft. very soon I would expect to see juniors perform better then the physical given that most juniors should be ok with gold above 700$. If I am wrong and gold does not correct from here then all the gold stocks will start to perform. Either way I think this is a good value play.