For over 30 years, Wall Street and its media have portrayed gold as a worthless investment, a "Barbarous relic." The propaganda has been intense, and has shaped the minds of many, including the big money managers and investors.
I think that the vast majority of the market does not believe the rise in gold and silver is real. There are a flood of top callers daily on Financial Television. In my opinion the bearish mentality towards metals and commodities in general is still the prevailing perception. If anything, Wall Street promoted for years that we are entitled to low commodity prices. Any rise was always called manipulation, and the politicians always joined in calling for investigations against the evil speculators. The oil sector is a good example over the last six or so years. People that invest in gold are called all sorts of names on FT. Names like conspiracy nuts, gold bugs, etc...
When the perception of true value changes in the minds of the big money managers, the well run and capitalized miners will see a huge flood of investment.
"For over 30 years, Wall Street and its media have portrayed gold as a worthless investment, a "Barbarous relic." The propaganda has been intense, and has shaped the minds of many, including the big money managers and investors."
In my opinion, you hit on a key point: the people running significant amounts of money tend to be younger mutual fund managers and hedge fund guys; they were educated as Keynesians and don't believe in gold - period.
We need them to start believing and pouring some of that money they control into mining stocks. Until that starts happening we won't see any bubble like price on mining stocks. However, I do think that day will come, just because at some point they won't be able to ignore it. And if gold continues upward the profits some of these miners will be earning will get attention.
The market cap of the mining sector is relatively tiny. Once miners become the place to have your money we'll see stock prices that will seem astounding by today's standards. But I think that could be a couple of years off, at least.