small gold miners ready to jump

Hi all...............No reason to panic, just be patient.

Aussie gold juniors have been classified as undervalued and under estimated by analysts for a long time now.

Banks and China are still buying up gold and the five year trend line actually is bang on course with a slight rebound since the NY close at $1576.50 it is now up at around US$1588.00 and rising.

As most of you are aware gold miners and particularly speckies have lagged well behind the rising gold prices over the past five years. Many have a low market cap and many of those are close to production or are in the early production stage.

The big difference is that CGM also has a drilling business making substantial profit and in fact is cashed up from it's gold production.

Many goldies fell today including some very well recognised prdocers and some other speckies:
AQG down 3.5% and RSG,GRY,IAU,PRU,IGR,TRY,GOA,PRU and many others were down even more.

I reckon this is just on media hype on analysts and reporters taking on board one or two comments in relation to China's change in Gold purchasing and changing sentiment on the Euro........Although I only take that with a grain of salt now as one day reports are saying gold is up on euro fears and the next day they are saying it is down on euro fears..........Which is it?

I've just come back from China and after discussions with a few businessmen, the only reason any buying has slowed is because of the overall Chinese and global slowdown. But many reckon that gold will always shine and will become a lot, lot stronger when the global instability settles a bit.

Banks are still buying gold and gold will for our foreseeable future always be recognised as a financial stronghold.

CGM is cashed with trial mining/exploration and drilling contracts in hand............Gold production reports real soon and I reckon we'll be glad we held.

I think we'll see gold hold a nice steady path from here and I also reckon many gold juniors will get a re rating in the not too distant future.

BTW gold is up more now at US$1589.50

Here's looking forward to the next reports and the first gold bar from our cyanidation plant.......real soon.

GL all holders

Cheers

Forro

DYOR IMHO