By some statistics, exploration and development companies have performed better than junior producers over the past 10 months. Companies with deposits in good jurisdictions that can earn a good return at $1200 Gold are favored by the market and should outperform during the next bull market. The index charted below contains 15 stocks which are equal weighted.
The index is currently holding around the spring lows. The problem is that there is little support between the 2013 lows and the spring 2014 lows. A break below this current support could potentially coincide with a break in Gold back below $1200/oz.
There are a handful of exploration and development companies we think will be tremendous buys in the coming weeks and months.