Need for ReservesFrom jsmineset.com:
"Jim Sinclair’s Commentary
I would suggest the key comment in the Dow Jones story below is the lack of new reserves which inherently says how important the juniors are.
'DJ Inflation, Economy, Waning Supply To Support Gold - Producers
NEW YORK (Dow Jones)–Declining supply and investor demand driven by economic uncertainty and future inflation are likely to keep gold prices high, mining company officials said Tuesday. "Our view is that the gold market is in probably one of its most promising phases," said Willie Jacobsz, head of investor relations with Gold Fields Ltd. (GFI).
He cited economic uncertainty around the world, future inflation and "a very real decline in global mine supply" as cause for his company’s optimism on the gold price.
"We are simply not finding any new reserves anywhere in the world," Jacobsz said at a New York Society of Security Analysts metals and mining conference. Further, deposits where gold can be relatively easily extracted are being tapped out, he said....'"