My Dear Friends,

I have spent this afternoon attempting to formulate an article on the junior gold shares with something new to tell you.

This has not proven easy.

It might be because I have given so much of myself to a project where I have had to fight my way past those who punish builders and reward destruction. Fight past those who would provide funding but destroy the project for a profit. It might be because some investors find it easy to blame management rather than try to understand what has really happened and what the opportunities are.

There are legitimate people, legitimate companies, and legitimate accomplishments that due to organized market operations have been swept under a rug.

Some stockholders blame the management or blame their brokers, but haven’t focused on the bullies that have brought this about.

What the bullies themselves have lost sight of is that many of these situation have real and significant value that is about to be recognized by new investors.

Those that have stayed with their selected issues have had plenty of time to come to know the company and its potential. They are committed or they would not be there.

Now that gold has significantly breached $1000 it is becoming an investment vehicle for an entire new class of investor.

These new investors are looking for and will recognize the value of the assets that are underlying the juniors and are unavailable in any other category of gold investment.

Concepts such as each 100,000 on ground ounces economically has the same value as 1,000,000 underground ounces when you consider the cost of mining. 1,000,000 surface mineable ounces can have a market value of one billion dollars less the cost of mining which is definitively the lowest in the best of circumstances.

Those juniors with mineable underground deposits not yet in development are free of the short of gold derivatives that are still a lead weight on the profitability of a producing entity – almost every producing entity.

When properly selected, the junior mining sector offers the best value in gold available.

Old fashioned financial means of growing a mineral prospect still can be undertaken by a junior, but a committed producer has the short of gold derivative with no way out.

These facts have been lost to manipulators mired in their assumed victory, and to stockholders.

Where the facts are not lost is among those seeking bargains that are free of short of gold derivatives existing only in the most depressed yet qualified juniors. It is these new and stronger investors that will turn the tide for the juniors as the legitimate financing window is now opening for the more qualified among the still walking but wounded junior gold situations.

27 years ago in an Alaskan sunset above the Arctic Circle in the Fall of 82, I witnessed a great bull moose in a nearby tundra pond. The picture was so profound and powerful that it has become the symbol of my life. To remind me, I have a bronze wind vane in the form of a bull moose over my office. When push comes to shove I lower my head and move straight ahead. As long as I draw a breath it is my code to plow forward regardless of any opposition. That is determination based in knowledge.

Respectfully yours,
Jim

http://jsmineset.com/2009/10/19/the-shift-between-gold-share-categories/

http://jsmineset.com/2009/10/19/the-shift-between-gold-share-categories/