Our research continues to argue that the current rebound record gold reserves will continue. Every time we have predicted a correction, the weakness in the sector has been only a fraction of what we expected, both in price and time. New bull markets following the epic markets typically exhibit exceptional low resistance in its first year. This bull has been no different. Therefore, we expect good results to continue. Today we share some of the reasons why the junior sector is available overcome in nominal and real terms.
Juniors usually overcome once the new bull and metal prices are higher trend established. Large cap miners better in the beginning of the new bull. Later, his performance in relative terms (against metals and youth) weakens. Naturally, once the trend established and improved sentiment, investors take on more risk. This benefits the junior sector. Moreover, that time is the point where the larger companies have the financial strength and optimism to acquire smaller companies or smaller. That’s another positive for young people.
The current surge in young as compared with the past still has much growth potential. Take a look at the bull analog table below. My junior gold index currently contains 18 companies and has an average capitalization of ~ $ 350 million market. It has been rebuilt several times dating back to 2000. While the index has already gained 200% in the last six months, if it follows the previous two cycles bull that could potentially double over the next seven months and then fold again thereafter!
The youth sector should see an increase in profit if $ 1300- $ 1400 gold becomes a floor and gold continues to rise. The gold bullish weekly Analog below shows that the recovery of gold has been following the weaker of the two analogues. If that continues, gold could retest its highest point at the end of next year.
The UN youth sector should see profit increase of IS $ 1300- $ 1400 Gold becomes a floor and the gold continues to rise. Weekly analog bullish Gold below shows that gold recovery has been following the WEAKEST Two analogs. If that is then gold could return an active test its Highest Point the end of next year.