As Deadlock states: "It isn't pretty!"

http://www.stockhouse.com/Columnists/2012/Mar/23/If-junior-golds-are-an-indicator-of-market-risk-or

.... Right now however, we are seeing high/stable gold prices but junior gold stocks that are moving back to the painfully low valuations hit in early December. Not only has the average dropped from February ($59 per ounce) when we were starting to see a nice recovery, but we are seeing many companies trading below $20 or $30 per ounce – and some near $6.

Some valuations have fallen dramatically (on a per ounce basis) from February. Riverstone Resources Inc. (TSX: V.RVS, Stock Forum) to $40 from $19, Keegan Resources Inc. (TSX: T.KGN, Stock Forum) $49 to $20, Carpathian Gold Inc. (TSX: T.CPN, Stock Forum) $30 to $21, Volta Resources Inc. (TSX: T.VTR, Stock Forum) $51 to $28 – just to name a few.

Volta (VTR.T $1.08) was very disappointing for us because I started coverage of that company near $0.90 in December and watched it run to $1.70 by mid February on strong drill results. Then it started to fall and even with a significant resource update this week, the stock has now dropped to $1.08 on strong and consistent selling. This was another one of those companies that exhibited at PDAC in Toronto and has seen nothing but selling ever since.

Volta is a classic example of the state of this market for small companies right now – and why you have to be very careful when you have people (often promoters) telling you a gold project is worth xx dollars. Volta has approx. $50 million in net cash and 5 million ounces in the ground (West Africa) that currently carries a valuation of only $28 per ounce.

When we are seeing valuations like this (and continual selling even near the low), there is something seriously wrong with the investment environment. What that is, I am not sure at the moment. I do know that we could all use a sustainable rally in “something” to bring back the speculators and inject some life into these beaten down juniors....