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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: Veteran98 who wrote (57498)	3/14/2008 10:44:35 AM
From: loantech	Read Replies (3) \| Respond to of 78426

I am ready for the junior move!

To: Veteran98 who wrote (57498)	3/14/2008 11:33:19 AM
From: AuBug	Read Replies (1) \| Respond to of 78426

It makes sense to me but it does not sound like a good trade for large fund. Juniors are too small to have a material impact on a large fund even if they go to the moon. If a stock was 1% of a fund and it doubled then it adds 1% performance to the fund. So a billion dollar fund would have to buy $10 million of a stock to get 1%. In many cases the ratios are even more skewed against getting enough leverage from a small stock to make it worth the effort to bother. So, that leaves us civilians to buy the small companies and I know my pockets are empty and already fully committed to junior gold, silver, platinum, oil & gas stocks. Since the public mania has not started it's easy to bury us. How many failed stories can you list? How many juniors can you list where you say they have this many ounces in the ground and they should be worth 2x what they're selling for today? Or even worse how many junior producers can you list where you can say they're selling this many ounces a quarter and they should be worth 2x what they're selling for? A few I'm sure. Funds shorting small cap golds while buying large cap, which are still small compared to where they usually play, will need to be the first to exit the trade to make money from it. When they reverse this trade we'll be making money hand over fist. Don't trade on margin because the road could get rough before the lid comes off. Be strong hands and not weak hands that can be easily shaken out due to margin calls.