$3.90 valuation by GS updated, page-416

Just to illustrate a point on the longer term view of goldies, the below BGMI index shows how early we are in a fully fledged bull market for miners. Recent low at 400 obviously coincides with the equity sell off.

To Rick Rule's point about the bullion market moves first, followed by a 6 - 9 month delay from the miners (obviously some have been on a pretty good journey already, so once thing heat up a little, fire works!).

Once we are across the 600-650 double top, its off to the races. Vaneks's GDX index has already crossed those resistance levels.

Obviously there's potentially some conflicting short term signals playing out, so its important to get the mental game plan straight now. In particular because we are at ~550 and the 2011 top was 1600, a very large opportunity gap!