Finally a credible story on Junior Miners (DUST, JDST, NUGT, JNUG)

Gold Rush Alaska

Grant Thornton finds out how bad it really is.

Why do the are the Direxion Daily Gold Miners Bear 3x Shares ETF (DUST) and Direxion Daily Junior Gold Miners Index Bear 3X Shares ETF (JDST), Direxion Shares Exchange Traded Fund Trust (NUGT), and Direxion Shares Exchange Traded Fund Trust (JNUG) trade so volatile? Finally a study/survey that justifies the state of the junior miners.

Grant Thornton has been around almost 100 years, this is not a fly-by-night firm that is trying to make a name for themselves.  Their research shows that the junior minors are cash strapped and hurting to make ends meat. Many of them will fold. Its why DUST, JDST, NUGT, JNUG are swinging 10%+ on a daily basis.  It's ugly for these companies that make up those 3X ETFs. 

Via | Nov 18th

A new study by consultants Grant Thornton shows just how rough young mining companies have it in the current economic climate. The conditions brought on by the shift in demand for commodities threaten the existence of these junior mining companies as well as most in the industry.

According to the 250 mining executives surveyed for the report, close to one third of junior miners have to raise additional funds within six months, while just under 60 percent know their companies need to top up cash within a year. What is perhaps the most worrisome is around 10 percent of junior miners are not aware of their companies need more money.

"It is an untenable situation for many mining companies, and one that has plagued the industry since the summer of 2010,” said Jeremy Jagt, mining leader for Grant Thornton Canada.

Our position has not changed on these ETFs, they are deadly. Again..Lose Money Fast on Miner 3X ETFs (DUST, JDST, NUGT, JNUG)