This is from Jubak' s portfolio, " Jubaks Picks", I have highlighted the part that I think will be important for gold juniors in 2010.

A happy new year from the Netherlands, Paul

Goldcorp (GG) reported third quarter earnings after the market close on November 4. The short-term news was that the company beat Wall Street earnings estimates by three cents a share and revenue projections by $77 million. China has been quietly buying gold for years, doubling its holdings over the last six years. But the country still holds only 2% of its reserves in gold. Even after India’s big buy, that country has just 6.2% of reserves in gold. Contrast that not just to the 32.7% peak in 1989 or to the 10.3% global average at the end of 2008, but to the 60% average in Europe or the 77% of reserves that the U.S. holds in gold. The Reserve Bank of India had 20% of its reserves in gold fifteen years ago. Before this recent buy, reserve levels had tumbled to just 3.2% in gold.

A buy the size of India’s is certainly big enough to change the supply/demand side of the global gold market. Its purchase of 200 metric tons of gold is equal to about 8% of the total annual output from the world’s gold mines.

With this post I’m adding Goldcorp to Jubak’s Picks with a target price of $48 a share by October 2010. Full disclosure: I will buy shares of Goldcorp for my personal portfolio three days after this is posted.