THOUGHTS - Over the past few years i've noticed how the junior explorers have gone through some tough times.
Metal prices were high, but with the fluctuations between spot gold moving few hundred dollars per oz each direction - the values of junior stocks would contunually come down.
Key takeaway ?
When spot prices rose, many junior metal stocks didn't rise to correlate to the new spot metal values. This is where wealth is taken from investors.
To the pont of when a junior needs ot raise minies - it requires excess shares which ultimately ends in mass dilution which is yet another form of chiselling away the value.
Throw in shorting, nakes shorts.. and the stock now has claws that won't let go.
Keeping the valuations at bay.
Sadly.. .markets never really improvised to combat these forces which erroded away common investor value.
Markets are now at a point - in order ot survive they must roll stocks - which has cleverly guided the wealth baked into the stock by way of - in situ metal value - into another hands VIA - rolling hre stock.
Most don't understand that when a stock purchase is made , and the stock goes down,
and a common investor is at a loss, and then... sells.
Another buys the stock in which another sold at a loss.
This is as far as most investors tihnk.
Yet... if one asks the question who captured the difference of the loss it's then, one understands why stocks have a really hard time gaining traction - there's prifits in loss....for others.
buy in at 10 cents.
stock goes down.
investors decides to sell at a loss.
sells at 5 cents... moves on.
another purchases their shares at 5 cents and takes a chance.
QUESTION
who just captured the 5 cent indifference
lol
Which is why.... reformation is needed.
Not enough has been done to correct the errosion of the junior space.
WHAT'S THAT PHRASE ?
you'll own nothing and be happy ?
So... on that note...
i don't think it's such a bad idea for a few notables to continue their " fame ' in the metals space by considering the advantages of taking a few juniors private and creating a different model of profits.
Higher profits - that are above the $200 - $300 oz - buyouts.
How can this be done ?
Less hands in the cookie jar - wealth transfers back to the investor.
A true pure play.
If the markerts adopted my own template - things would correct.
I don't see that happeneing anytime soon.
So... a great way for reformation is... those in leadership andnow the junior space -
take the lead and a few goodprojects and create a new standard of investing.
Backed by real vlaue - in situ value.
where the junior is taken priavate
key plays that are positioned near major miners that could be potential feeders for the majors or taken out. Where, investors are treated with respect, and valuations are not tinkered with - where investors retain the wealth by way of, in situ metal backing. Thus, less volatility - racked up oz's never change, only the spot value or based on success or no successful drill campaign.
It's how investing should be.
What is now ?
A simple right to take investors monies.
On the whim od another saying it's best - while that other, wil lstil ldraw a paycheck.
Investors look on - wondering what just happened with wealth taken away.
It always begins by.... resource measuring.
If a junior drills but never tallies a resource - then... investors are cheatedof the in situ wealth.
Nothing better than - exploring, finding minerals and the excitment attached to the big find.
The fun is lost when others take from others.
Is it time for a change ?
https://www.youtube.com/watch?v=9bKwRW0l-Qk
Oct 28 approaches.
is it too late for reformation ?
fresh new ideas ?
anything is possible...
one just has to initiate it to do it.
excuse the excess posts...
it's just who i am. An investor with a voice....
and i have something to say.
Cheers....