that peak late last year shows how the miners got annihilated compared to gold.
if you draw a longer term chart it would illustrate "normal" conditions even better.
i believe the miners are still cheap compared to gold.
their margins should be expanding.
but the one variable we have in today's market that we did not have in the past is the GLD.
this allows folks to have exposure to the metals in a way that was not available to retail folks in the past.
folks that did not trade futures but wanted exposure to the metals would buy the miners.
going forward the miners may not really enjoy premium valuations compared to bullion until the later stages of this PM bull when the public really gets involved
Paul has long been a bear on gold....like Jon Nadler.
He has the guts to call gold 25% overpriced...as though he's smarter than the many
players who actually determine price.
Gold traders are calling for gold to decline next week.
This is not a contrarion call as they've been correct 58%
of the time over the past 283 weeks.