One more though for the day.

There continues a widening divergence between share prices of majors and junior gold producers, and those of exploration companies. Trend shifts begin this way.

Now let's look at these as parallels to mining stocks in general.

As concern/fear mounts in the broader markets, increasing demand for mining stocks falls firsly upon major producers. Junior producers follow, but with lesser demand, so we will see a divergence in prices (as is happening now - see link below).

Meanwhile, no one seems to want shares in exploration companies (like now). Their prices fall.

Then, as prices for majors begin to look expensive compared to juniors, the prices for juniors get bid up. This continues until a speculative fever erupts in exploration stocks, and explosively so over a year or two. During this time, fortunes will have been made.

This is the history of the mining sector! Just pay attention enough to know to get out near the top.

http://finance.yahoo.com/echarts?s=GDX+Interactive#{%22range%22%3A%223mo%22%2C%22scale%22%3A%22linear%22%2C%22comparisons%22%3A{%22GDXJ%22%3A{%22color%22%3A%22%23cc0000%22%2C%22weight%22%3A1}}}

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O.k., just one more thing. Money is never destroyed, it just changes hands, and it does so between those who are prepared and those who are not.