One of the services that I subscribe to is "LaMetropole". That service today shared some comments from a blogger who answered a question on Victoria's Billboard comparing Victoria's initial drill results (spectacular) and Aurelian (ARU) stellar find (who's stock appreciated more than 4,000% from its bottom to top in 2007). The comments are listed below, but the important thing to recognize is the fact that Victoria, for the first time in its history, is getting a great deal of publicity without the benefit of a PR department promoting their stock. LaMetropole has a large following in the gold investment community, and the fact that Victoria's name appeared was absolutely astounding. Victoria is basically getting FREE PR work, and I couldn't be more happy for all the investors (including myself) who purchased this company sometime ago before anyone in the gold community could even spell the name "Victoria". One can only imagine how high this stock is going to go if the company is successful in confirming the high grade gold that they initially reported in January 2007 from their drilling activity at their Cove McCoy property in Nevada.
An explanation on the whys of the lousy junior gold/silver share action that we have witnessed for so long:
I wrote a question on the Victoria Resources (VIT.V) chatroom yesterday re: the difference between VIT's initial drill results (spectacular) and Aurelian's stellar find. This poster gives some unique perspective about what may or may not be driving juniors currently.
One of the best posts I've read.
Oh, and by the way my juniors have started to come to life in the past day and a half, even if some selected ones haven't jumped yet
Andy … April of 2006 seems like years ago at this point. Last April and May we were sky rocketing to $730 and a new breed of US and Canadian investors who had never bought a gold stock before were piling in to all gold juniors. ARU announced their initial and follow-up holes at the height of the first major upleg in junior gold stocks and reaped the rewards they deserved. Then came the bombing of the gold price and these new investors who were not used to these periodic bombings got crushed with their juniors that lost 50%-75% of their value in a few short months. Remember, these new investors hadn't (and still haven't) seen even a 10% correction in the US stock market since 2003 and for the most part, will never find their way back into gold juniors to get beat like a rented mule.
Fast forward to today and most retail investors who would normally be playing the gold juniors have all sold and are now speculating on moose pastures posing as uranium juniors. Several have run from $.20 to over $1.50-$2.00 today and have been easy money. Uranium doesn't have the hidden force that gold does to periodically bomb the price as there is no futures market in uranium. It has gone straight up from under $10 to over $80 without a single pullback. Why buy a gold junior with it's inherent tie to the price of gold when you can buy a uranium junior knowing the uranium price always goes up?
I've read of the wild moves in gold juniors in the late 70's but I'm wondering if they had the "competition" of the uranium juniors today? Most newsletter writers I respect say that the public won't go crazy with gold juniors until we pass $1,000. Jim Sinclair implies there will be another bombing of gold at $1,000 that will then lead to another rocket to $1,650 and beyond. So if the public gets in at $1,000, will their gold junior investment take another 50% drubbing?
It's unfair at this point to compare ARU with VIT as ARU has drilled enough holes that 10 million ounces of gold is a good possibility. Victoria showed promise in 2004 but the drilling program couldn't follow-up with the early success and the shareprice collapsed. This may still be in the mind of some of the professionals who follow the junior market closely.
When I got in at $.72 right after the early January release, I did so because I hadn't seen a hole such as this one drilled in Nevada by a junior in many years. I closely read all pr's daily from the gold junior mket and still haven't found a reason to this day to invest in any other company that has the promise that Victoria has going for it.
I know some here have got impatient and have thrown away their shares for uranium moose pastures. For the time being, the moose pastures are winning. I've read a few posts that say if we get another hole like #1 in 2A or 4 that we will see $1.50 to $2.00. It is my contention that if we get another hole like #1 in the next press release, this stock will open over $3.00 and likely see $5.00 within a week of the press release. We will no longer be under the radar at that point and even a non-existent IR department will not be able to keep the share price from exploding