Another reason for NOT investing in gold explorers and developers is if you believe that gold will be down to $1,300 in the next five year, as John Hathaway says many now do,
http://kingworldnews.com/kingworldnews/Broadcast/Entries/2011/11/17_John_Hathaway.html
You might remember Larry Parks has been noting the same for years,
Why Gold Equities have Underperformed the price of gold:
http://www.youtube.com/watch?v=7p_ye5Sx934