The Shift Between Gold Share Categories
Posted By
Jim Sinclair On October 19, 2009 @ 6:28 pm In
General Editorial"There is a separate group known as Senior and Junior Gold Royaltycompanies that will generally outperform as hyperinflation that impactsmining costs occurs. This outperformance should be a product of thecost of production falling upon the royalty partner, not the royaltyholder whose participation is an amount of the gross production.
"There is the exploration company that begins production andtherefore moves up the scale toward the category of junior producer.Usually this is accompanied by improvement in price as many investmententities will not buy non-producing exploration companies.
"There is the exploration company that has success and will beevaluated by the quality of its success and deal making. Historicallysuccess and deal making for such a company increases interest in thecompany."
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"At the beginning of a gold bull market it is gold itself, then Major Producers that perform.
As gold makes its way past $1000 to $1650 and beyond, the order upto now has been Major Producers and the top half of Junior Producersbenefitting with while the short attacked the bottom half of JuniorProducers and all of Gold Exploration entities. Watch closely now as ashift takes place."
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