Very good discussion here. Methinks this is an excellent board compared to most. Credit to all those who put in thoughtful comments. It makes it an interesting read.
I am sure most understand this, so I am preaching to the choir, but if anyone really is perplexed about why Ok stock does not move higher.........
The bigger money and institutions for most part have no interest in juniors or adding to their junior or senior positions. Many of the funds are holding losing positions in pm shares and cannot or will not contemplate any more buying for time being. A typical small cap Canadian or US fund may have a top ten allocation to stuff like Northern Dynasty, Centerra which are both down over 50% These are not micro caps and many have significant resources and some production. ( you can check Globefund precious metals funds or look into the US pm funds) A tell tale sign of the oversold nature of the pm share market is the sheer destruction a precious metals share runs against on any hint of bad news. Look at majors CDM, IMG, ABX, smaller companies like Nova Gold ( who have more high grade gold ounces in safe juristiction than anyone I can think of ) Rubicon, who has a deposit - Phoenix Project, beside Goldcorps famous Red Lake Mines that is in fact a higher grade. And nobody cares. Alexco which has one of the richest pure high grade silver deposit in world, averaging 1000 grams per tonne has gone from over $9 share to about $3.80. nobody cares.
What we will need to get a fair value for Orko and many other quality pm shares is physical metals breaking into intermediate trending moves past historical highs. Then the newspapers will be filled with merger talks and buyouts. That isn't too far away. If this HUI and GDXJ can bottom out here in December we will be in good shape for a rally. Also more liquidity and central bank easing will form good foundation for higher prices. Then you will get headlines like we had in summer of 2011:
And in the meantime, hopefully these charts round out near bottoms and gather momentum plus some volumes in January.