Monday, April 5, 2010

Junior Gold Stocks Ready to Soar?

Junior Gold Stocks

After taking the latest economic hit or correction, gold has held on strongly, finding support at around the $1,100 an ounce level. There doesn't seem to be much chance that it'll change any time soon, and gold mining stocks, especially junior gold stocks, could be ready to explode upwards, as they lag the overall gold market, even though gold continues to be a long-term play.

For example, the larger gold stocks are down about 15 percent, while gold itself is up 30 percent. But for junior gold stocks, they are still down 60 percent, with a lot of room to increase, which many of them assuredly will going forward. This is as of the latter part of 2007, when noting the numbers above.

The gold bull market will be around for some time, and even though there is the possibility of interest rates being increased in the latter part of 2010, that shouldn't be near enough to overcome the economic pressures which continue to drive the price and value of gold up.

Junior Gold Stocks

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