We don't wish to sound uncharitable but the plain, unvarnished truth is that most investors are idiots. Deep down you know that - most of you reading this have been big enough idiots in your time, as has the writer - if we are honest with ourselves we must own up to it. If aliens from another planet landed on earth and took a look at the long-term charts for junior mining stocks they would fairly conclude that earthlings are drunken lunatics, as a result of seeing the wild, insane gyrations of junior stock prices. They probably have alcohol on other planets, and if they are lucky, something resembling Jack Daniels, although of course it might be green in color. Want down to earth proof of how stupid investors can be? - you don't have to look far to find it. Three years ago silver in the ground was valued at $5, now it is valued at about 50 cents? - get the picture? - is the penny starting to drop? Now you understand why the majors are starting to go after the quality juniors - and what do you think is going to happen if gold accelerates to the upside and silver and PM stock indices break out to new highs and go on a tear? That's right - there will be a scramble by the majors to gobble up the quality juniors and also mid-cap companies with reserves already defined to add their grossly undervalued assets to their depleted inventories. This is why the charts of many junior mining stocks, which have been trampled into the dust in recent months, are now looking so bullish - they have MASSIVE upside potential, and are unlikely to drop even if gold and silver now correct back.

http://www.clivemaund.com/article.php?art_id=68