Brutal in the Juniors!2011 Brutal Year for the Junior Golds
The Market tells us the only trade today and throughout most 2011, was/is only the safe haven USD & Treasuries NOT Gold, Gold Stocks and/or the junior Golds which have suffered the most in this sector of the market, and the most since the financial crisis of 2008. The Juniors trade like $400 POG not today’s corrected $1600. Oh $1585 down $85…Chicken Little the sky is falling re: Gold?
As you well know, today it’s the European Debt Crisis that’s affecting the junior Golds and POG. I still can’t imagine ever selling Gold or my juniors and buying USD/T’Bills.
Gold is Money People, real Money!
Physical Gold is being bought in record amounts throughout 2011, while paper Gold is being sold manipulating the prices lower! Silver too! Ask Eric Sprott.
The next Debt Crisis is the USA, today’s safe haven? Debt has breeched the $15T mark,…yes, 15 Trillion Dollar mark rising over 100% of GDP. (Watch japan too, as its Debt:GDP is over 200%) The precursor, watch rates closely.
So the macro is definitely working against us in the Junior Gold Sector, which is being compounded by intense year-end Tax Loss selling. (23rd Dec, last day to claim 2011 losses)
Just can’t sell my gold here, sorry market,…and have been scouring the charts looking for the best deals. What I discovered is that many of the juniors, while at low SP for the year, also have GAPS in the charts 22 Sep 2011. From my experience, Gaps get filled, study it, look up the charts but this history bodes well for these juniors to return to these previous levels of the Gap. Below some Favorites, Probe holding up the best of the juniors I track,
PRB today $2.06, 2011 interday High $2.70, down 24% No Gap 22 Sep 2011;
EAG today
.13, 2011 interday High
.355, down 64% Gap 18-19 covered;
AZ today
.19, 2011 interday High
.55, down 65% no Gap;
KAM today $1.85, 2011 interday High $4.71 down 61% Gap $3.27-3.49 22 Sep 2011;
TRR today $2.57, 2011 intraday High $5.91 down 57% Gap $4.35-4.52 22 Sep 2011;
NES today $2.47, 2011 intraday High $3.37 down 27% Gap $2.69-2.76 22 Sep 2011; and
NDM today $6.20, 2011 intraday High $21.50 down 71% Gap 22 Sep closed, Gap 10 March $15.86
These are just a few favorites, my “steal of a deal” but there are many more and keep in mind the Gaps will be closed!
Cheers, Mark