A Macro Reason Why Money has not flowed into ToachiFind below an excerpted comment by 'Excelsior' a regular poster to both 'Kereport' and 'Ceo.ca' who is well worth following. It explains why early cycle juniors (such as Toachi) have not run up with the recent rise in gold.
Excelsior says:
The larger miners have definitely got a bid the last few weeks, and held onto most of the gains. I see retail investors on many sites scratching their heads on why their precious early stage discovery play hasn’t rocketed higher on the rising metals prices, and they just don’t get how these cycles work.
The new money from institutional firms and generalist investors will usually land in mining ETFs (mostly composed of the larger market cap and more liquid Majors and larger Mid-tiers, along with the Royalty & Streaming companies). After those start to move and gain, then money starts moving downstream to Jrs – smaller producers, development stage companies, and exploration drill plays.
The fact that miners did outperform the metals was bullish, but I’d like to see a larger ratio (3.5:1) and more action in Silver prices just like everyone else.
It’s also amusing how impatient so many investors get. Gold makes a move over a few weeks, and immediately investors are ready to throw the baby (Silver & Jrs) out with the bathwater (first retracement) without giving them reasonable time (multiple weeks or even a month or 2 to get on the move).