Hate to say it, but there are more risks in the short term. After Ospraie Fund went belly-up this week, it now seems that RAB Capital is in trouble as well. Most of these hedge funds in trouble have been sailing the bull trend in commodity markets and with natural gas, copper, gold & silver having seriously dropped, these funds have made huge losses, probably leading to some liquidations. To some extent, that's already happened and has partly led to the ferociousness of the drop.

But what's more worrying for the junior mining sector is that these hedge funds may have to sell their holdings in lilliquid stocks, such as junior mining stocks. And this may take quite a long time as being illiquid, junior mining stocks are not easy to sell. A sell order of $100K may lead some stocks to decimate.

It's a situation worth keeping an eye on, especially if prices of commodities continue to drop.