Gold $15.42 | Silver $18.18 FOMO

Silver in USD - $17 we hardly knew you

Gold flew through $1500 and silver has breached $18.

Which means gold is halfway to the $3000 I think it will reach in a sustained rally and silver is coming up on the 1/3 level to $60.

It is very easy for investors to conclude that now that the metals are running they may have missed out on the opportunity to jump into the stocks which will ultimately benefit from that rally.

I point out in my book Gold $3000 | Silver $60 that the gold and silver explorers and developers tend to lag the moves in the metal market.

Here are some of the gold and silver juniors I follow as at 10:45 Pacific

$BHS      $0.105        +0.005
$GPLY    $0.215        -0.005
$GPY      $0.345        -0.005
$WGO    $1.07          -0.02
$TIG       $0.43          -0.06
$ATC      $0.245        +0.005
$ABN     $0.15          -0.005

The fact is that it takes a while for the market to revalue junior explorers and developers even at the beginning of a gold and silver rally. Indeed, most of the really life changing profits in such a rally occur towards the end of the rally rather than the beginning.

At the moment, the excitement generated by rising gold and silver prices is confined to the long suffering junior company investors who have been holding some of these shares for years.

What makes the juniors rise is a more general perception that gold and silver are going to go up and keep going up. That, in turn, draws peoples attention first to the metals themselves, then to the gold and silver ETFs, then to the senior producers, eventually to the mid-tier producers and then, finally, to the gold and silver juniors.

However, as I point out in Gold $3000 | Silver $60  where the metals may double or triple in value, the junior shares, carefully selected, can experience 5x to 50x share price increases as the rally takes hold.

Right now junior explorers and developers are still trading near their lows.

Smart investors will take advantage of this slow start to build positions which have very low cost entry points.

Missing the very low entry points will be an error but a recoverable one if the rally takes hold as the junior explorers will likely continue to be grossly undervalued well past gold $2000 and silver $30.