Jr StocksFrom Andrew Mickey, THIS is why SDRG and so many other juniors have fallen. But no worries, gold and silver will keep rising, and at some point the Street will be convinced, just as they finally believed in oil stocks after oil prices rose from 1995-2005.
And with junior mining valuations (roughly
.50/ Ag equiv. oz.) currently at their lowest level in decades (I'll bet they are no higher than the Bre-X days), the risk/reward ratio is as strong as I've ever seen it.
yoyo
Finally, all of this uncertainty has pushed gold bull market to extraordinary levels. The combination of general uncertainty, massive government deficits, and negative real interest rates has propelled gold back to its all time highs.
The thing is though, gold stocks haven’t gone along for the ride. During gold’s current record-setting march, the Market Vectors Gold Miners ETF (NYSE:GDX) has fallen almost 10% and Market Vectors Junior Gold Miners ETF (NASDAQ:GDXJ) has fallen almost 15%.