I think we are all know were he is coming from :-)
Mining Shares – I have no more room on my head for scratch marks from trying to figure out why the junior resource market hasn’t shared greatly in the wealth gained in the metals markets themselves.
The old logic that the companies who primarily find the next mines should benefit from the rise in the metals they’re looking for doesn’t seem to apply anymore. Excuses can include: general pressure in equities; Bullion ETFs have sapped much of the monies that used to find their way into this market during run ups in metals prices; and lack of major finds or big gains overall has kept hot money from flowing in.
I feel like someone at a roulette table who keeps betting black despite numerous reds in a row saying to himself that black has to hit.
I do think we’re going to see more consolidation in the junior sector as companies try to recapitalize or merge. I also think we’re going to see the majors reach down now to those juniors who are clearly onto a significant deposit as majors are running out of opportunities to merge with similar size players. I lost count of how many times I have cried wolf, but I still believe this sector can have a big run up as the big pools of money still available and in commodities can find a home here if some sort of major discovery or some large gains in share prices can send up a flare.
