Good article on Kitco regarding juniors. It is true once one does well there will be a mad scramble for juniors. Most articles on the subject suggest it will be those with proven resources.However am also trying to learn how to recognise high grade real potential from high grade hype. Not easy as most lead to complicated futures. Those that do well though fly, just such a rare find.
Meanwhile nothing wrong with low grade shallow deposits as they are miners preference for ease to define and exploit. I would look for anything that has a mine life over 10 years and can potentially produce over 100,000oz per year. More the better.
http://www.kitco.com/ind/Hommelberg/jan292008.html
Just when will it happen, what will be the trigger? I feel it will start with takeover activity. Larger miners have been sold cheap deposits for such a long time but now more and more juniors will have a reason to go into production themselves leaving fewer gold deposits on fire sale.
I own a variety of gold stocks but not fully invested atm due to volatile market conditions. But keeping careful eye on watchlists that include most gold companies to be able to detect where the money is going.
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