Some Big Picture Thoughts Saw this commentary from Ian Gordon on Mineweb today. The link to the interview is:
https://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=153858&sn=Detail&pid=92730
The whole interview is worth a read, but I thought that his comment on the juniors was worth a peek.
TGR: You've been monitoring the trading volumes of junior precious metal equities, which are down significantly from levels established in the previous decade.
IG: They're at about 20% of the volumes in 2008 when the Venture Exchange began to perform very well. That performance was enhanced by rising volume. Since its peak, which was in about April 2011 on the Venture Exchange, the volume has been falling quite dramatically, along with price.
I maintain that is actually bullish rather than bearish because normally volume should follow price. What we have here is volume that is not going anywhere near where price is going. Volume has been decreasing in a downward market. People have been moving their money out because they are scared of the risk associated with investing in the junior stocks, but there has been essentially no buying coming into the Venture Exchange to offset the selling.
I also follow the EU sitution pretty closely since I think it is the primary "fear factor" in the current environment affecting LVN and the other mining stocks. A lot of the commentary has been projecting a Greek or Spanish departure from the Euro. I have been watching the German reaction since the elections in France and Greece. Nero would be proud of the EU politicians who seem to be" fiddling while Rome burns". I am beginning to think that we need to consider that the Germans may decide to abandon the Euro first. There is mounting evidence that the ground work for a return to the DM is already underway. Not sure how this will play out in the junior mining sector, but I think we need to put it on our thinking agenda. Here is a link to some commentary I saw today that seems to indicate a similar point of view:
https://brucekrasting.blogspot.com/2012/06/another-surprising-conversation-with.html