PM juniors and micros go parabolic likely before gold does. The key is that the broader market (the big important players) believes that gold is not in a bubble, indeed they will soon believe they are getting in on the ground floor still and that it will eventually bubble.

When it is believed that gold will not drop below $1500 + in the long term then the scenario for the best juniors to take off is cast. Most of their models for profitability have used a conservative price of gold at $1000 / oz.

Most juniors if able to develop a team able to produce (remember historically most fail ... but as the mutual fund industry says "past performance is no guarantee of future results") the seniors will begin to buy.

The "weak hands" those that will sell at a solid gain will be bought before the strong hands ...those who are confident in their ability to build the mine, extract the gold, have the financing in place or are currently cash flow positive ... it is only logical for them to hold on and wait.

The great finds will also go first .. look for detour gold DGC with their low grade but 10 million oz to be targetted ... the good (million +) will attract attention ... smart managment will hold on until the latter stages of the bubble ... 10,000 + per ounce.

We are on the cusp of something big esp if no QE3 is announced ... the stock market will dive but gold will go strong. The smart money is making its move now...that is why gold continues to jump day in and out. If QE3 is announced ... it is only a short term deferral of the inevitable.

My holdings are diversified in the gold sector for the above reasons.

Hold

CEF.A ... balanced holdings of physical gold and silver

XGD ... diversified holdings of the big guys

ORV and CRJ - juniors cash flow positive and building reserves

AVA, GWA, GWY, VIO, etc etc ... I'm sure you all have your faves in this category.

MOST IMPORTANTLY

Those who also follow Jim SInclair will probably recognize a Jesse Livermore quote

"After spending many years in Wall Street and after making and losing millions of dollars I
want to tell you this: It never was my thinking that made the big money for me. It always was my sitting".

Sit tight my friends ...

the world's most boring prophet.

orgy