jt

Why Gold Juniors Have Not Yet Popped

Kiwi is right on...the entire junior sector has been shorted almost beyond recognition. In fact, it would appear that it has been a sort of a "hedge" by hedgies, but to the max...long majors/short juniors. But it has been pushed to the max by the Cartel. They know they're losing, if not already lost, their grip on the physical market.

Their hope is twofold: to discourage money from coming out of the genl equity market (some unreal number like $170$TTTTRillion) and see ANY significant part go into these juniors. Even 1% would set off 10-baggers all over the place, esp as smashed down as they are right now. But the second is more sinister--that is, to hopefully buy up some of these juniors on the VERY cheap...in what they call "deep storage gold." (There are many who do not believe we have the gold in FtKnox that TPTB say we do...that it has been used for many years now to lease or swap out and sell into the market to continuously suppress its price by the Fed, our Treasury dept, by the other Western central banks, and by bullion banks here like JPMorgain4Elites and GoldmanSuchs. The large part of the gold supposedly there has had its label changed to "deep storage gold." Why?...those in the know believe that it isn't there and that they are counting on buying out oz in the ground by buying out cheap these juniors...ie, "deep" storage...but that's another story...or maybe not). But that's going to take some VERY fancy footwork...the very smell of these hedgies covering is going to sky some of the juniors, and the rest of the market will jump in with both feet.

I have a significant position in many of the juniors, and am down varying amounts on many of them. But I simply continue to review what they have and nibble here and there, almost on a daily basis....gold, silver, and uranium...another sector unbelievably shorted.

All of the reasons that Howard has given are good reasons why a junior MIGHT not be successful...but ALL of them are secondary presently to the massive shorting of these companies by hedgies directed by the anti-gold cartel. jt