We are witnessing a major blowout to the upside which is supported by the economic and political global fundamentals.  This was not totally unexpected by those who had been in the last major commodity bull market back during the mid to late 70’s.  The only real difference this time is that most of those “gold bugs” are now deceased and looking down from above.  [That’s right, true gold bugs go to Heaven]

I personally remember back then when I was a pm broker that the “problems” really took root after TPTB began to increase the margins rates in order to drive out the little guys.  It did drive out the little guys before it was over but at the same time it also threw up a really big red flag that they were not in complete control any longer.  Very similar to what is now taking place.  The point being, it took them months and raising interest rates through the roof to put the gold market back in its place once the momentum began.  Therefore what you are witnessing today is JUST THE BEGINNING of higher prices and market volatility in the pm sector.  The younger generation of investors / traders are about to find out just how hard it is going to be to stay on the bull for a full 8 seconds.

Another point to remember concerning the mining stocks.  Again a very similar situation back then to today - undervalued at this stage of the bull market cycle.  Only those investors at that time who understood the “leverage factor” and recognized the potential were buying shares that others were ignoring at the time.  Back then, as will again be the case this time, the so-called “high risk penny stocks” will far outperform both the physical market and the large / mid-tier mining stocks on a percentage basis.  They will start this run behind the others but soon hereafter, as then, the public who are searching for safety find them and begin to buy up the shares in quantity.  Those who got in early reaped the rewards of that momentum.

Therefore, although it is important to own physicals, and some excellent mid-tier stocks, I would avoid the majors, and not forget about those small miners - the ones that performed well in the first phase and have survived this vicious assault as of late - they will be the STAR PERFORMERS of the future as this bull market in pm’s continues to unfold.

Compared to the other mining stocks that are moving higher these past couple of day, the jrs have not yet begun to advance as they will on a percentage basis.  The opportunity still exists for those who wish to “travel to the dark-side” of the pm sector - all I am saying is that they should at least be given serious consideration [given how they performed during the 70’s] and not overlooked or just set aside.

Wishing all here the very best in all their future financial endeavors - it is going to get “REAL” real soon.