He believes the juniors have underperformed over the last while for a number of reasons.

1. Rising mining costs
2. Perceived liquidity risk
3. Hedge fund shorting juniors and going long physical gold.

As he indicated previously he believes that these factors are about to change for the better and that at the current prices the juniors are a far Superior bargain.

The normal recovery process in the juniors is

1. Gold starts to move up
2. The large and mid cap gold mining companies move up with it.
3. As gold continues to move up the large companies get to fair value and the juniors are discovered and move to more proper valuations. 4. Just as selling causes more selling, buying causes more buying (momentum traders and shrt covering) and the moves can be explosive.

Historically there has been more leverage in the junior's and that is where I am putting my money now.