RE: Seriously what happened to ELD????This is the reason juniors are underperforming, according to The Gold Report.
Not only ELD, but the majority of junior gold mining stocks.
"Why Junior Miners Are Underperforming"
Source: Boris Sobolev, Seeking Alpha 02/19/2008
"Risk aversion is now the prevailing sentiment for investors in the stock and credit markets. Credit spreads are growing across the board...
Investors are moving money from paper assets to tangibles. Hard assets such as gold, silver, platinum, crude oil and various agricultural products (all part of the Reuters-CRB Index - $CCI) are near new highs.
In the natural resource stock arena, this mounting risk aversion is reflected in the underperformance of small cap juniors. In fact, this class of equities began to fall sharply relative to gold in the summer of 2007, at the same time when fears of the systemic financial crisis started to haunt investors...
This spells opportunity. Unless we are on the brink of falling into a depression (the probability of which, in our opinion, is slim to none), patient investors who continue to build positions in extremely undervalued junior mining companies will be quite pleased with their returns in 2008".