Look at the gap between the Red Line (Large/Mid Cap Producing Gold Stocks) and the Blue Line (Junior Gold Exploration Companies). Juniors will start to outperform the Senior Gold Producing companies when we start seeing the gap between the red and blue lines narrow. There is just noway the juniors are not going to go up substantially where gold goes up to $1,600 +. The large cap gold companies are going to make a ton of money, building up a war chest to acquire junior exploration companies that have been successful in proving up reserves - and they aren't going to wait too long - they are going to make their acquisitions before the junior stocks get expensive. It is a lot cheaper for a senior gold company to acquire proven reserves from juniors than for them to spend millions on exploration in hopes of establishing new reserves. Large gold producers,for the most part, haven't been successful in building reserves. Their resources are being depleted at a faster rate than the new reserves that they have been able to bring online. Therefore, it is time to be fully invested in junior gold companies that have good management and good properties. Although I have recommended purchase of several juniors, Victoria Resource at .88 per share, remains my top pick. My other recommendations can be located at Stockcharts.com -- Public Charts -- Posted By: Thomas G. Smith.
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