50+ blogs
Find the top gold stocks here:
http://www.goldinvestmentletter.com/
This phenomenon makes logical and scientific sense, as the large producers become more and more profitable, and begin to ensure their place at the top of the heap by buying assets in smaller companies, driving junior exploration company’s valuations up as well. A perfect example of what’s to come was when Newmont purchased Fronteer early this year. I bought in at $9 on a correction and woke up 3 weeks later to the stock trading at $14.50 due to the acquisition announcement. Certainly, this puts pressure on Barrick, Goldcorp, Kinross, and the rest of the majors to minimally keep pace with similar resource acquisitions. And, the explorers have been working more and more aggressively now for 7 plus years since the precious metals bull started to become evident. Now, some of these companies have very real assets and are trading at record low valuations…..a combo that makes me quite excited to recommend our favorite stocks and share our strategy for profiting strategically and wisely from today forward.
http://www.goldinvestmentletter.com/
The Gold/XAU ratio has historically been a fairly good indicator as to when mining stocks were cheap or expensive compared to the metals. The range has become skewed since the market meltdown of 2008 but I believe still relevant. Historically we saw an average ratio of under 4 to 1 but as you’ll see now, we are approaching double digit levels
