Gold Price & Junior CorrelationI have to take. issue with my respected colleagues on the degree of correlation between the price of gold and the share price of juniors. The problem with Durk's analysis is one of sample size. You simply cannot take a single stock, one which has made a huge discovery increasing its value by 3000% and expect a meaningful comparison with a commodity which may have gone up 10% in a year.
So while I respect your post, to say that gold price is responsible for only 5% of junior action is way outside my experience. One of the reasons why gold price matters is in financing in the public markets. Private placements do not happen when gold is in the dumps. Promoters have nothing to do. The sheep are grazing elsewhere.
It is gold breaking through the magic $1000 level that brings investors back to the Venture Exchange
Rob Mcewen has a junior gold index. If you have the inclination Durk, run that correlation and prove me wrong.