Great post Casey. Nice and clear and accurate regarding JP's assessment of juniors lag.

I'll add that 2006 was not much different than now as far as juniors being surpressed and the the entire environment looking very bleak. Gold had touched above $700 on May 11th (I think) of 2006 and then promptly pulled back to the $500's over the next two months. I recall that morning because I'd hit a personal high in my portfolio and I told my wife I was booking laser eye surgery as a little bonus to myself. As it turned out by the next day I cancelled the appointment.

None the less, gold did bottom two months later, then rose and fell back not quite touching it's low. Then it was off to the races. Gold producers ran first, then the mids. At some point in the fall of 2006 I recall Lawrence Roulston responding to frustrated investors who had seen there juniors lagging the producers and gold without much gains. He said it's only a matter of time and suggested that M&A activity was increasing; that this would cause a wave of buying and soon prices would be off to the races. And that led to the huge gains that followed in late 2006 and 2007... and so I booked another appointment for laser eye surgery last summer.

Now we have seen gold hit 1000 and the exact same pattern of 2006 is unfolding. We're now in the 2nd upleg and producers are running. Goldcorp is up 10% this week alone. All the producers are rising.

However this is better than 2006 because there's piles of money on the sidelines waiting to come back to the market. It won't take much to get this bull in juniors back on track.

I'm still wearing glasses but I don't plan to be before the year ends!