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Message: Corelation between Gold and Juniors

Corelation between Gold and Juniors

posted on Oct 02, 2008 03:56PM

I have been thinking of selling Tyhee going into gold bullion. Because first goes up gold, then goes up producers, then goes juniors. Rigth!

So, why not go into gold now. Take the upswing and then go into Tyhee afterwards.

My conclusion and take is:

I dont get too hung up on golds performalnce .... we are already at gold price levels where it is very good business in the long run to mine gold.

Look at the charts. Over the years, if you take the ratio on (price gold / price Tyhee or others) the variance is very big.

In other words, I do not think higher gold prices is required. We dont NEED higher gold prices, for Tyhee to raise over the next years. Of cause higher gold prices helps, but it is not at all needed. The market is simply just overshooting right now and not rational.

Fasten your seat bealth and sit tight.

And buy some more, we have has our -80%.

Euroman

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